Thank you for all of your help, it was bacterial and she took antibiotics to help with it.
Her skin scabs went away -- now that I write this I wonder if it was the anti biotics or the prescription food Z/D? On another note, the Z/D didn't end up working out for her though -- she began to poop blood and very dark stool many times since my last post. The vet said she has pancreatitis and colitis so after this last time at the vet (3x in a week) I decided to put her on chicken and rice and start to move her back to her original food. So many things and I feel horrible for her
I hate to see her in pain or uncomfortable.
Thanks everyone for your help!