I want to ask a breeder if they know if an 8 year old shar-pei will have a bad reaction to suddenly living in a strange place with unknown humans and no other dogs.....
you pretty much have your answer right there. ANY dog is going to act crazy if they don't know where they are and don't have "their" humans around to comfort them - i don't know the particulars of SharPei's, but i think they're pretty owner-centric dogs, right? It's kind of like how a little kid will panic if they're on their own and don't know anyone around them!
i would NEVER let my 6 year old Chow Chow stay somewhere for an extended length of time without spending some time there with her first, and even then i wouldn't leave her alone for more than 2 or 3 hours at a time to start with. Just like humans, dogs get stressed out in unknown situations and with unknown people - that's why training and providing them with stability and routine is SO SO SO important.
the important thing here is that your dog didn't attack a human. THAT would have been serious. Although i'm sure the owner of the sheep isn't happy (and aww poor sheepies), so long as the dog didn't display HUMAN aggression, i really don't see the need to place your dog somewhere else.
i know your dad is probably freaked out, as this stuff can be really scary, but i think he's overreacting.
sorry this is happening, i can't imagine being faced with this sort of situation - i'd live in my car before i gave my baby away. Not even kidding, not even a little bit.
ive posted this thread on two boards because im desparate....I just dont want her to go away 
