Just wanted to update..
Things are getting better around her, Dotty is blending in better and the fights have diminished to sporadic/few and play is more prominent.
I basically took a step back and let Otis put her in her place and I think it worked, now she doens't seek him out anymore, rather tries to be his bud. Luna, our 10lb Schnorkie mix we have has also laid it on her, so Dotty has been taught and is still being taught what is cool and not.
She slept in her crate last night, cried and screamend for an hour before she fell asleep, but finally she gave up and tuckered out. I had the crate right next to our bed, so she wouldn't feel punished/abandoned/lonely, or whatever. Otis laid in his crate a few feet away and was curled up in a ball, but letting this really deep growls out every so often..I have never heard him do that before so it took me a while to figure out who was doing it, through the screams and whining from Dotty.
So far so good, she is coming around and is becoming a sweet part in our pack..
To all of you fellow forum friends, thank you so much for all your positive input, expertise and kind thoughts, they have helped me stay sane, as I was thinking I had made a big mistake bringing Dotty into our lives and making my pack so obviously unhappy. Play now overtakes the negative rumbles..