Hi Andrea,
Been a long time, hasn't it?

--Yes, it has!!

Look, I just took in a foster dog from SharPei Savers where we had
gotten blind Murray years ago. This little girl is 5 years old and
blind too. Her 80 year old owner got sick and her "friends" took
Angel to the pound. SharPei Savers rescued her, but because no foster
homes were available, she was put in a kennel to wait for the past 2
months. I decided to be a foster home for them, and she is my first
one. She is very sweet.

--Good for you!

Trouble is she is OBSESSED with my 3 cats! I
mean, she won't stop looking for them constantly! We just got her
Sat.  so I let her have the run of the house, and even though she's
gotten smacked 3 times so far, it doesn't stop her.

--What's happening is that the reinforcement she gets from chasing the cats is more important to her than the punishment of having the cats swat her on the nose.  When that happens, you have to arrange the environment so she doesn't have the chance to constantly rehearse the bad behavior, because she's currently reinforcing her own bad behavior over and over.  When the dog doesn't get the prize she is looking for, she will be more open to taking a "consolation prize" from us.

She smells them as they pass and she's off and tracking. Even if they don't pass her, she's looking, all the time. This afternoon I finally left her leash on her harness and kept her with me. Right now the leash is hooked over my shoe as I am on the computer, and for the first time she is laying down.

-- Now you're talking! By controlling her movements, you've interrupted her ability to perform the self-reinforcing behavior.  Now it's time to take the next step and set up the environment for a series of lessons.   Because she's blind, it will be a little more complicated, but the essence is the same.  Read on...

She would run around here for hours and hours before and
never rest. So how can I fix her fixation? I did buy a new clicker as
I gave my old one away, do I get it and click it now as she is
resting and give her a treat?

-- Yes, please buy another clicker.  Blind dogs love it.  If she is resting quietly, you can capture that behavior and click and treat it.  But what are you going to name that behavior?  Think of something you would like to say when the cats are present.  Let's say you want to teach the command "leave it."

-- Get a friend to help you with this.  Have the friend hold some treats in his hand while you have the clicker and some other, different treats available.  Tell the friend to lower his closed hand close enough to her that she can smell the treats but to simply keep his hand closed so she can't get them.  He's got to leave his hand down there while she tries to get the treats out.  In the meantime, you say "Leave it" and wait until she gives up trying and looks away, even if it's for a split second.  At the precise instant that she looks away, you click and treat her and your friend removes his hand.  Do this several times until she looks away as soon as you say, "Leave it." 

-- The last time you do this, say, "Wait," instead of "leave it," and when you click, let your friend open his hand and give her his treats.  (You see, "Leave it" means that the dog is never going to get it.  "Wait" means that the dog can have it, but has to wait until you say it's okay.)  I always like to end a training session on a high note like this.  Training sessions should only last about 10 minutes or so.

-- Next step:  You really can't do this next step if the dog has free run of the house, and I do recommend you using baby gates or some other means to define the areas where your dog is allowed.   Putting her on a leash or in an x-pen are fine for the next part. 

-- Anyway, put away all the cats except one while your dog is confined to an area.  Put the one cat in a cat carrier, and consider covering it with a towel or something so the cat will not be afraid when she sees the dog.  Bring the carrier within "noseshot" of your dog, but far enough away that the dog will not be able to reach it.  Say "Leave it," and let the dog struggle to get at the cat, because you know that it will never work.

-- At the precise second that the dog seems to give up or turn away, click and treat!  Make a big fuss like it's the best trick you've ever seen.  You'll need to repeat this over and over with the various cats, taking as much time as you need.  Remember that you should only do it for 10 minutes at a time, so it may be once a day for several weeks, several times a day for a week or two, or whatever.  The behavior of the dog and the cats is what will determine how much time you need. 

-- Don't be too stingy with the click and treat at first.  For example, the dog may only turn away for a split-second and you've got to be quick enough to click and treat before she goes back to trying for the cat.

-- If this does not work at the distance you've selected because the dog simply never looks away, try it again with the cat a little farther away. 

-- The main thing to be careful of is to make sure the cats don't get traumatized during this experience.  You can also use some cat-scented item instead of the actual cat if you like.  If the dog doesn't respond right away, you can rustle the item so it sounds more like a live cat.

And what else can I do? HELP!!!
Lynn

--Lynn, I'm glad you asked and I certainly hope this is of help!  Please let us know how it goes! So nice hearing from you!!  :)  Andrea