Thanks for all your thoughts. The vet just thought it was a wart and since she is picking/biting it it should be removed.

Wolflady, here are the answer to some of your questions.
Shai is not literally a retired racer, she never raced on the dog tracks, but in our area of Ohio there is a big coon dog trials (Kenton National) every Sept and they breed greyhounds with coonhounds to get the look of a hounddog and speed of a greyhound. Shai was never bred, but rescued running around the woods after the trials were over. Last year the count I heard one week after the trials they had picked up 40 abandoned dogs and there probably almost that many more to pick up. The ones that aren't picked up become wild and breed with coyotes and therefore that county has a BAD coyote/coydog problem.
If the dogs aren't fast enough they just leave them, not just hounds either all kinds of dogs.
I moved from Hardin Co to Wyandot Co almost 2 years ago and decided I wanted a dog, I went to the Humane Soc and she just stole my heart. As soon as she come up to me she laid her head on my shoulder. She had been brought over to Wyandot Co Humane Soc by the Hardin Co dog warden (at that time Hardin Co didn't have a humane soc but they do now).
Immedietly after taking her home she began following me around. I took her to my parents that evening and she immedietly bonded with my dad.(GRANPA!! ) Even after just a few hours when I would walk out the door to get something she would whine and pace.
She suffered from separation anxiety, I put her in the garage and she tore up the door, curtains, so I put her in the bathroom, the first night was ok, the 2nd night, I left the radio on (MY BAD) and she tore the trim off the door, and the heater off the wall!! So into the crate she went, I regretted doing it but she does 100% better after that, at first she didn't like it, now I just say get in your bed and in she goes.
Its always a struggle when she gets loose, I have come to my wits end a couple times, and the people on this board are super, and very understanding.
At first I was worried about how she would be around kids, I have a very active nephew, and their dog Scooby does super with him. Shai adores Jake and as soon as Josh is up and running around I am sure she will adore him too. She follows Jake door to door b/c she know eventually he will open the door and she can escape!!! He has done that 2-3 times!!!
She loves kids.
I went looking for a small dog, can you believe that? But I love her with all my heart and wouldn't trade her for the world.
If you have any other questions, feel free I am no expert, but I have read some books also.

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~~"You do not own a dog, the dog owns you."~~
(Anonymous)