Torn Feathers and Fur

Many who have read my blog before, know of the bird tragedies that have occurred lately in my home. The feather strewn across my lawn and living room had many saying "Oh My!" What I didn't add then was that my parakeet did that week too!
This week, my dog has still be trying her status as our family canine. Due to her breed, I understand why this happens, but its not okay. I promised my step father that if she got to his birds and killed any, she would go. That day has come. This week she has broken into my bird cage and tormented on of the white Leghorns. Also I was informed of her nature coming into play with one of Steve's show chickens. That bird is no longer suitable for events. Maybe that's due to its lack of life.
What do you do when the day has come when you have to own up to your word? Now I am faced with the battled of getting this dog's attention of our family fowl. How do you curve a dog's nature?
I wouldn't mind just getting rid of her; that would solve so many problems. She is a good dog. But she can't kill my birds! Another hang up I have will just getting rid of her is the money we have put into her. It adds up fast. The time also is a big part. The clincher: can this be stopped?
My options are thus- 1) Shock collar every time she gets towards the chickens. 2) Tie dead chicken to neck 3) Electric barriers and fencing.
There are problems to each though. The first works great- when the collar is on. The collar is also remote control, requiring me to watch at all times. And she knows when its off. Therefore making it a permanent fixture on her neck.
The second idea is kinda gross. Tying a chicken to her neck was recommended by a friend's father. He has chicken and had this problem with a dog. He said it worked because the dog got tired of the chicken in its face. Will it work? We try tomorrow.
The third idea is expensive. I don't know about you, but I don't have more money to put into a dog. I can hardly pay bills and eat. In concept it would work, but do I really want to spends hundreds on a dog that stresses me out and drives me crazy?
And what do I do when these fail? Who wants to buy a dog once she is 7 months old? Most don't get re-homed very well after they are 5-6 months old. Chad tells me I don't put enough effort into training. But to be honest, I don't like having this dog. I have in effect two toddlers. Dogs frustrate me. Yeah, I am lazy when it comes to training. I don't care enough sometimes.
Why did I agree to a dog?