Are you certain it isn't the dew claw growing into the pad, but appears to be coming out of it? I have seen that.
And yes, they hate when you touch them. Cesar got his dew claws clipped yesterday as a matter of fact and when I have to do his left claw, he goes ballistic, because that one grows almost directly into the pad right away.
I started a thread on this.
http://www.yorkietalk.com/forums/yor...dew-claws.html
It actually looks a lot worse in person and when I first saw it I thought it was something coming out of his paw as well.
Before I even clip the claw he lets out a high pitch squeal. I'm not sure why, he's never been hurt. I'm guessing when it gets too long it causes discomfort, because yesterday it was actually touching the pad (just barely).
Just a thought.