Well I did a little more research on acupunture and appearently it only helps if there is some sort of medical cause to the anxiety. I am going to look further into the message therapy though.

It has also been recommended to me to try a anxiety wrap http://www.anxietywrap.com/, which I think I am going to try.

The good news is that I am starting to see some improvement from the Prozac. Lately Penny Lane's ears are up more and she is playing a bit more. Yesterday she was actually running and rolling in the back yard for a full 15 minutes. She also seems to be a little less concerned when Leo barks at something outside the house.

Taking her to my sister's house when I am out of town helps a great deal, she is less anxious when I return. We are finding out that it is not necessarily other dogs that she gets aggressive with, rather it is when other dogs are being boisterous. She is absolutely fine with my sisters 13year old GSD (Tara) since all Tara does is mostly sleep and waddle to the food or water bowl. She also is fine when Leo and Hutch (my sisters 2year old GSD) are at rest, but the minute they start playing together, she gets very growly and nippy and tries to jump on my lap.

As you can see, I am trying to do everything I can to make this work. I think if I can get Penny's anxiety under control, I think it will all be more manageable. The weird thing is that when Penny gets nervous because of thunderstorms or fireworks she wants to be close to Leo not me.

Penny is also learning to leave Sam the cat alone - which is extremely important as the last couple of skirmishes have been when she tried to chase Sam and Leo wanted to protect him. I shut Sam up in a different room when I am not home so there is no chance of him getting hurt.

Sorry this is so long - just thought I would give everyone an update.