I have just come back from the vet this morning.  A couple of months ago I took my dog to the vet with what I thought was an eye infection.  Her eye was red in the corner with yellow discharge.  She didn't seem to be bothered by it.  The vet said that there was no damage and gave me steroid anti-biotics.  Most of them ended up on the floor - she wriggled.  I know that I should have gone back again but left and left it!  No excuse.  Her eyes have continued to be a bit messy - not normal discharge then.  Last week I noticed that the hair above her eye was thinning and the skin seemed to be a bit dry.  The vet asked me whether there was a scab on it but there wasn't.  She examined both eyes and said that there were nodules on the third eyelid.  I have an ointment to put in for the next week and then go back again.  The discharge has actually lessened the last week.  Has anyone heard of this before?  The only thing that has really changed in her environment is the heavier use of the boiler (oil) that she share the utility room with.