aw i hope she gets better hopefully nothing happens to her. hm thats kinda weird that she was that scared of another sheep. mine just walked right up to each other and then just started eating grass like if they new each other, but that good that they are bonding now. kinda funny about your dog you'd think even the scent would make him know its a sheep haha.
Ah but he wool sheep will smell very heavily of lanolin where a hair sheep will not. Use sheep Nutri-drench to boost the sickly ones health. Awesome stuff. Probably another thing weirding both the sheep and the dog is that because of the shortened legs she moves wrong. The dog is possibly reacting on ancient wolf instinct to remove weak animals from the heard. The sheep is acting on flocking instinct to stick with uniformity and safety. Differentness is sometimes seen as a threat to the survival of the herd. A single difference like fluffy wool can be overlooked but she also smells weird and moves funny.