Her behavior is very serious as you know and you really do need to get a behaviorist come to your house and work with her. Even little dogs can do serious damage to a child's face. A receptionist at my doctor's office adopted a Maltese who bit her husband in the face when he accidentally rolled over in bed into "her space". He needed stitches.
Until you can afford a behaviorist, you could try the Nothing in Life is Free program. I know many people who have had success using this method early on, before the behavior has escalated to the point Kelsey's has.
http://www.dogbreedinfo.com/nothingfree.htm http://www.hsus.org/pets/pet_care/ou...echniques.html http://www.k9deb.com/nilif.htm