I have 3 birds and 1 dog, and we have a peaceful home. Have you heard of Ceasar Milan? I suggest hitting youtube and watching his show "The Dog Whisperer" on Nat Geo Wild. We "claimed" our birds, and established with the dog that he was NOT allowed to mess with them. Only one of them is an out-of-cage bird, but we established this concept with all of them just in case of accidental release. He eats the food that falls from the cage (Flick has been known to throw it at him deliberately), but he is not allowed to follow Flick or sniff the birds themselves through the cage bars. He knows this and lets it be. Now Flick is a fiesty little bird, and will chase Ranger (the dog) if he gets too close to him. Ranger is 10 months old, 60lbs, and still growing, so an actual confrontation between them could be deadly. We have taught Ranger he is not allowed to be around Flick when he is on the floor. Result? Even when Flick gets irritated and goes to pick a fight, Ranger heads the other way, often before us humans even have a chance to see what is about to happen.
In order for dogs and birds to be safe together, you MUST be the pack leader and have the complete respect and trust of your dogs. If you don't, the second your back is turned you will have a blood bath on your hands. You may think you can watch it all the time but someday something will happen to distract you just at the wrong second, and that will not end well. Trust me, I have had a dog kill a bird. A sweet, gentle dog who had never so much as hinted that she wanted a birdie snack. You have to understand your FLOCK and your PACK and be able to function in both. When you do, the rewards are huge!