Splayed Legs Loviebird

[Megan140]

I have a lovebird named Peppi who is around ten years old I got from an acquaintance who couldn't care for her. She is currently in a large finch cage with plenty of perches, toys, and food. Her legs are so badly splayed that they are almost in line with her body and one foot can't move and probably has no feeling. The other day she and my Myer's, Trinity, got into a fight that ended in Peppi with a nasty wound on her beak and injured toes on her bad foot (that I'm suspecting wasn't Trinity) and have since kept Trinity in her cage when I'm not around to watch them.
Today I saw blood on Peppi's face and examined her feet since when she grooms her feet, she's sometimes too rough with the one with no feeling. I saw that she had chewed the ends of the foot off with bone now sticking out! The vet I usually go to was already closed when I discovered this. The foot is covered and I'll be calling the vet tomorrow before I start work.
What could have caused her to destroy her foot THAT badly?! Is there anything else I can do to help her? She has things to occupy her and her cage is right next to my other Lovebird cage (the other two are bonded but they enjoy chirping at each other through the bars). Is there anything specific I can get for her to help her move around? I'm embarrassed it took me this long to think of platform perches so I'll be buying those when I get paid. She likes being on the bottom of her cage (she throws her foot onto the floor and then eats it off the floor). Is there something I'm doing wrong?

[Wolf]

For her safety never let her be alone with another bird, you must be there to protect her. Despite her difficulties she still thinks that she is a big bird and will defend herself as best she can. Trinity may very well have bitten off part of her toe as this is common when they fight as are beak injuries. It is probably too late for therapy to do any good with her legs as this needed to be done early in her life, but flat perches and ramps will make it easier for her to get around in her cage. Also do not let any other birds land on her cage as they will fight through the bars and she could get injured again.
Place her food in small paper plates on the bottom of the cage and use wide shallow dish for water again on the bottom of her cage. Place toys down low so that she can play with them without falling and risking injury.

[Pajarita]

And always pad the bottom of the cage and the platforms (a towel under the paper will do fine) because with her legs splayed out like that, she will be laying on her chest and abdomen and can develop sores there.

[Megan140]

And always pad the bottom of the cage and the platforms (a towel under the paper will do fine) because with her legs splayed out like that, she will be laying on her chest and abdomen and can develop sores there.

I was going to buy some soft cage litter for the bottom. Are the towels a better idea?

[Wolf]

I would think that the towel would be easier to see the birds poops to make sure they are good, it is unlikely to shift and leave thin spots and should be easy to replace and clean for reuse.

[Pajarita]

Put a folded towel under the paper one would normally use to line the bottom tray but put it ON the grid, not under it. And you can use several and/or folded paper towels on the platforms. Birds are not meant to rest on their bellies so a soft 'bed' is necessary for the ones with severely splayed legs (I've had a couple). And always put her food on a flat white paper plate at the bottom of the cage, greens and all, so she can reach them without effort. Does she fly? The ones I had that were severely splayed had no difficulty flying and loved doing it (but you need to supervise closely because they can't 'land' just anywhere like a normal bird would).