Well we had a visit to the vet today. The weeping eye is from an in turned eyelid (I think he called it entropian?), which will require surgery. I'll have this done in August when she is going in to be desexed. Until then I just have to keep bathing it, and keep an eye (no pun intended) on any infections which may occur.
The vet took a couple of scrapings from the scabs, and thinks Babe may have some type of mite. He has started her on a course of weekly injections to see if that recitifies the problem. Fingers crossed that will work. In the meantime, I'm just to keep her on her sensitive-skin diet, omega oil and aloveen washes (weekly).
Thanks for replying, and hopefully if any one else's dog has the same symptoms as Babe, this may help them a bit in the future.
Cheers!
Lis