Thanks for the post.. am one of those people who definitely takes care of their pets. I love my dog so I am taking good care of his foot like I would one of my daughters. We do walk him and my husband though salt too, but we have not taken him in over a week (he is going crazy) He is 10 now but acts like a puppy. I know lumps and bumps are normal on an older dog, but I am like you, I think it is irritated from the nail. I just use about 10 bandaids a day LOL he licks them off and I put one right back on. Glad I found this forum. Thanks :O)
It sure sounds like it's just irritation from the adjoining nail, and you're on the right track by keeping it covered until it heals. I'm sure it's going to be tough to keep something on that toe though! Also, since it appears to be getting worse, it's good to keep your vet up on your progress (or lack thereof). Since you live in a snowy area, are your roads salted or otherwise chemically treated? That could be part of the problem right there since those things are extremely hard on a dog's feet tissues.