Well after a long night of trying to decide what is best for Gypsy I decided not to cut her coat. I chatted with some rescue people,Sheltie friends and some members here so I think I made the right decision.
Although the Dermatologist thought this would help I decided I didn't think it would. When I bath her I am able to get the hexadine shampoo through to her skin easily,she blew her coat a couple weeks ago so she has proper ventilation to the area, I am able to get the antibiotic spray to the sores with no issues and I think cutting her coat will only allow the allergens easier access to her skin. Also if she doesn't have staph yet I am afraid if her coat isn't protecting her she could pick it up more easily outside with the open sores. I did have the groomer trim the hair on her rear legs a couple weeks ago and because she has such a thick coat it was harder to get through to her skin with it shorter because it curls and tangles easier than.
So there will be no embarrassing Lioness pics of Gypsy. We just want to thank all of you for your suggestions and support.
I'll keep you all updated on her progress.