Wow, is there anything you do like about her?
Didn't you see her or a picture of her and know about her weight before you adopted her? If she was born 7/07 she should have had her first heat aprox 6-10 months of age. I don't know why her nipples would hang to the side. If she is coming into heat they could get swollen, but wouldn't hang out to the side. I would NEVER dock a tail at her age. Most dogs don't come trained, thats up to the owners to teach them was acceptable or not. If she hasn't had any training you can't blame her for bad behavior, she dosen't know any better. Take her to a training class, I bet you'd have fun with her. If you can't get past her looks, I would rehome her and find a person that is not looking for a certain Yorkie look, and just wants a companion. take care