Due to the swollen appearance, It is likely a small localized staph infection from catching a toe on something, or getting punctured, then becoming infected. If you want it to heal properly and not remain infective, no Blue-Kote, Neosporin, or honey will help against staph. You need Nitrofurazone salve (preferably) or Silvadene cream (silver sulfadiazine). Soak the foot in very warm water-epsom salt solution for about 5 minutes. If you can see the center point of infection, heat sterilize the blade of a small, sharp pocket knife. Wear surgical gloves. Apply Betadine with a non stick pad or clean cotton balls. Perforate the infected tissue, and squeeze the exudate out. You may need to carefully scoop out hardened pus. Wipe the wound clean inside and out. Clean it out until you see blood. Blood flowing back into the area of the wound will help the medicine reach the point of infection. You can stop bleeding by gently pinching the toe/applying pressure. You will need non-stick pads some sports tape or duct tape, and some Vetrap tape:
http://www.valleyvet.com/ct_detail.html?pgguid=30e07463-7b6a-11d5-a192-00b0d0204ae5 Apply Nitrofurazone with a tongue depressor or a clean, flat object you will not reuse. Tape the non stick pad around the toe so it won't come off. Be inventive starting around the leg with Vetrap, and circling around the toe so the toe is completely protected from dirt or debris.Don't wrap it too tight. Replace bandaging each day after removing old bandage, cleaning wound, and reapplying Nitrofurazone. Do this until the infection is gone and the wound heals.
This no joke or excessive methodology. I am currently dealing with a much nastier infection than that one, and have learned much about staph and it's resilience to old methods of treatment. Finally, after using the more effective topical, and Trimethoprim Sulfa oral suspension 12 hours apart for 5 days, has improvement quickened. Your bird's infection is small and localized. Larger infections run the risk of staph traveling through the body, causing slow, painful death, which is why tissue penetrating meds such as Trimethoprim Sulfa are so much more effective than penicillin, erythromycin, lincomycin, and spectinomycin.