I've been asked to help find out for a friend of a friend what might be wrong with his GSD.He has been losing weight and has developed cysts that keep breaking open and bleeding on all 4 of his legs around the back of his ankles rather than his pads.The vet has done scrapings for fungal infections and blood tests for thyroid and all was clear.The vet thinks it may be some kind of infection presenting itself in this way but has no answers.Does this sound famillier to anyone or could anyone point me in the direction of some good GSD sites to search? He's a working GSD so his future will be pretty bleak if they can't find out what it is,any help at all would be wonderful :)

The cysts ARE on the pads of all feet, I believe I explained it wrong when asking for help.  :)  There are also cysts on the backs of the hind legs.  Antibiotics combined with steroid shots did have the cysts beginning to dry but they break open again eventually.  Because he is a working dog (a K9 officer) there is no chance for a period of rest to see if that helps as well.  They may be able to take him out of service for a week or two but an extended period would be out of the question.  Though, I should say, he was boarded for a week while his partner was on vacation and the cysts opened back up as soon as he was exercised.  He doesn't spend much time on hard surfaces.  He lives in the house and unless he is on a call, he is on a pad in the back of a patrol car.  His weekly training takes place on grass.

Another bit that's peculiar, which I neglected to mention to Charlie72 is that his toenails have not needed clipped in 2 years.  Not once.  He, as I said, is not walked regularly on hard surfaces nor does he play on them (because of his feet).

Along with his thyroid test coming back within range, his organ blood work was clear.  This is not a thyroid, liver, kidney, etc. condition.  We are stumped.  We have a great vet that isn't close to giving up but that's to say nothing of our department who WILL give up.  To them, he is a tool and if he is nonfunctional will be taken out of service.

His appetite is fine as is his water intake.  His elimination has not been affected nor has his work or play drive.  The vet has said that he is in obvious discomfort but that his adrenaline, whilst working, will keep him going.  This is great for the department but not so good for poor Stuka. 

Might I suggest putting him in boots in the mean time?  Also, are you near the sea as a walk/paddle in salty water might help.  If this ever occurs in horses we cold hose them, then bath with warm water, alternating hot/cold therapy.  It sounds similar to an allergic reaction?  I am assuming he is a general purpose dogs, so pursues the suspect over and through various terrain.  It is very possible he has ran through something that has reacted to his skin.  Because it is on his feet and legs it has to be something he has walked through.

Wouldn't worry about his toenails.  My 2 litter brothers nails grow at very different rates.  Plus, the more you cut the faster they grow, when I was showing I was constantly trimming smidges of hair off to encourage it to grow longer and thicker.

Have to say, NOT a fan of steroids.  Too many vets are too quick to suggest them, and many dogs react to them.  Take him for a swim in the sea as whatever it is, is still in the skin - the salt will kill it naturally.

Thank you for the suggestions, however allergies were ruled out several months ago.

Can I just ask if these have been diagnosed as actual cysts or are they more like pustules or absesces?  I apologise for my ingnorance as my mental image of cysts is that they are very big fluid filled "sacks" under the skin.  I see pustules and absesces more as the kind to be painful and split.  I still think there must be something irritating his skin.  Poor guy!

http://www.peteducation.com/article.cfm?cls=2&cat=1593&articleid=426

Found this link, hopefully it might help you.

Has anyone had any dealings with PANNICULITIS? 

Have they done both panel tests for thyroid as some vets only do one which does not always give the correct diagnosis?

That I don't know but I will mention it, thanks :)