Deborahlee-
I have been having the same exact symptoms with one of my girls for the past couple of weeks. Started with greenish diarrhea about a month and a half ago, then her tail went down two weeks ago, and her belly has gradually been getting bigger and bigger. Three days ago I noticed that her breathing had become labored, exactly as you mentioned like a fish out of water. And her abdomen is extremely large and very firm, not so much squishy anymore. She is having a really difficult time walking, and just sits like a penguin with her head held high and her wings out. Yesterday, I brought her inside the house, gave her a bath, and probed inside her vent. Nothing came out save for a tiny bit of the greenish diarrhea, and I didn't feel anything when probing inside. I was so disappointed because I was hoping that she had just become eggbound, the egg(s) would pass, and all would be well. And this morning, still nothing. She is eating and drinking.
I went to the pharmacy last night and got a needle, with the intent of trying to 'drain' her. I have no idea if I will actually be able to do it, or if it will actually do any good if I try. I have read that with abdominal distension, there isn't always any fluid to drain, that sometimes it is enlarged organs or other undrainable masses. And I've also read, as CMV mentioned in your post, that this is only a temporary fix that does nothing to alleviate the underlying cause. I'd hate to put her through the pain of jabbing a needle into her, only to have negative results. So, I'm still on the fence unless someone can offer me a very good reason to try.
I have no idea what is going on with Lily. She had a lice infestation, so I treated her for that. I will be doing my second half of worming this coming Sunday, although I doubt that Lily will be around to get any benefit from that. I have read about internal laying, lymphoid leukosis, salpingitis, septicemia, entiritus and many other causes/contributers to her 'water belly' condition. I have been so confused about all the different signs and symptoms of each, and none of them appear to have good outcomes. I am afraid that no matter what I do to help her, she will inevitably pass. There are no local vets that have any avian experience, and I'm not sure if I could afford one anyways. My only hope is that if she is going to die, she goes quickly and without too much discomfort. Although, as CMV mentioned above, her symptoms are indicative that she is already in extreme pain. I have no idea how to help her along.
I am so sorry that you are going through this with your hen. And I am sorry that I can't offer any advice or help. I've hijacked your post for several reasons. Mainly because our symptoms and the condition of our girls seem so similar. Also, because I can totally understand your distress in trying to deal with all of this. Lastly, because I'm hoping that by sharing my experiences we will get some more advice/answers, plus it bumps your post up.
I so hope your hen gets better, and good luck with however you decide to treat her!!!! If there is anything I find that helps my chicken, I will let you know. I will watch your post, and hopefully we will both get some clues.
Katherine