that sounds very serious. if you think the animal will do it again it may be worthwhile to get her used to a muzzle so she can still play because I think isolation could make it worse. i have NO experience with muzzles so this may cause training difficulties of it's own.
I feel the important thing is the dog knows the house and yard and everything really is NOT the dogs territory and can pick and choose who lives there. punish aggression fairly but immediately. a light spank or time out is vital. if she's used to escaping confinement then she is used to getting her own way at all times. find a harness she cannot escape from or a kennel and do not let her get you to 'give up'.
you may have a battle of wills at hand but for the safety of your children, and on a positive note a great dog member of your family at stake, you should look at it as a great challenge.
Tiger A.K.A Clown Town- 12/19/13