I would get a large varikennel for the dog and let it sleep in DD room at night, crated. If it howls at night tell DD too bad she wanted to keep the dog and it will stop once it gets used to it. Feed it in the kennel so it associates it with food and it will learn to love the kennel as it's den even though it may not like the kennel initially. You can pick up used kennels on craigslist or classified. Gonna have to be a big one, it sounds like.
I would make DD bathe the dog weekly and groom it with an undercoat comb and shedding blade or a 'Furminator' to keep down the hair in the house. Sheperds can produce a mighty amount of hair. Make this a condition of keeping the dog.
Tell your DD she has to start putting a great deal of effort into that dog if she wants to keep it. We are picking on DD here because (in my house anyway) it is more likely you can get DD to do these things than DH.
It needs to go to an obedience class and learn sit, down, stay and come. This will take care of some of the hyperness and give more control. This would also be a good project for DD or DH, or even you (if you can stand it) as it will reinforce your alpha status. The DD has to practice EVERY night with it on its obedience. This will be best done on a pinch collar. If there are no local classes there are a lot of great books you can get used, too. Make SURE the pinch collar is fitted properly with though all that hair.
Bring it into the house and practice a down at your feet EVERY night on leash for 30 min. for one month. The first few times its gonna be ugly, but every time the dog gets up you say down and firmly put it back in a down. The dog doesn't have to be down for 30 consecutive min., you just have to practice this for 30 min every night. Practice this until the dog can lay quietly at your feet for 30 min.. This will teach the dog it needs quieter in the the house and reinforce your alpha status. You will have to be determinedly consistent and persistent. Practice once a week thereafter.
Get a shock collar and have it on the dog when you are out with it and shock it every time it tries to hassle a chicken. Say "LEAVE IT" immediately before you zap the dog. You will then have trained a command to leave the chickens alone. You can have liberal parameters on the hassle definition part because she has already killed several. Basically if she is thinking bad chicken thoughts she gets zapped. You may have to do this for months, but she will come around. However, never leave her unattended w/ the chickens (i know you know that).
When you cannot directly supervise the dog she goes on her run line. But you aleady know that, too. And you are right, of course, when you are gone any length of time the dog goes on the run line. If you can get an outdoor run, great!
If ya'll put consistent effort into this dog for 1 year you will have a wonderful companion for the next 15 years.
Bossy me. But I have trained multiple breeds in obedience for over 20 years and if you do this you will have a great dog.