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Corgis will herd anything that moves-cat, birds, snakes, and what they are supposed to herd-sheep and cattle. Dogs and cats can get along. I have one female who is an over active cat herder, while her great grandson is happy to sit and lick the cat's nose all afternoon.
On the situation where she bit the older dog, what happened that led up to the bite? If she is intact and the dog she bite is also intact and female, that could be a large part of the issue. Hormones do funny things to dogs that end up leading to very bad habits and behavior.
Have you taken any obedience classes with her? What did you learn, how long ago was it and how was the class taught?
Little more info and I might be able to suggest some solutions.
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