training help for my dog Grace

Wells, TX(Zone 8b)

I have a 5yr old shep mix that I got as a puppy from the shelter in Az. She is now 5 yrs old. Grace is a very loving mamas girl and good most of the time BUT let a stray dog come within sight and its like she becomes possessed.. Im at my wits end. As of today she has broken 2 windows trying to get to the dogs she sees in "her " yard. Its almost like her brain short circuts and she goes wild when she see them.. She lives with an 11 yr old lab/shep mix and 2 cats. She has had training,will walk on heel. sit, stay and do all the basic stuff. Shes extremely site orentaited. She doesnt do well with other dogs to play with.. Its like she wants to play but then gets scared and becomes aggressive and tries to dominate them. I m disabled but try to take her out at least once a day to walk and play with her just to wear her down. I cant take her very far cause the town I live in has a ton of loose dogs, no leash laws and no dog catcher to take care of them.. Its like people around here just open their doors in the morning and tell their dogs go have fun andwell see you at dinner... Grace is very teritorial in regards to the yard too but if I allow her to meet you in the house shes all love and kisses.. I have tried just about evey thing I can think of and have read about to make her stop except for beating her senseless which I would NEVER do.. I dont believe in hitting animals like some do.I will correct her firmly but not hit her. I afraid shes going to hurt herself or get out if or should I say when, she breaks another window. any suggestions would be greatly appreciated
Thanks
Kathleen and Grace

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