You want DFhack... you can confiscate everything they own. It's one of the command-line options, I think. I do it all the time, very useful. Then mark all the dwarves' clothes for dumping, and the other dwarves will come take them to your dump. Just do that periodically, and dwarves owning clothing will be a thing of the past. Also, give her a bedroom without any storage options; that makes it less likely she tries to claim things. That gets rid of the cancellation spam. A masterwork bed makes it a nice enough bedroom to keep her mood high--which you will want to do, if she keeps the "sustained major injuries" negative thought permanently, as many of my permanently injured dwarves do.
As for what to do with her, I suggest turning off all her labors and making her the fort's broker. Make a burrow including the depot, food and booze stockpiles, and her room. That way she is always close to the depot when you need her. She doesn't need arms or legs to be a trader, and since she's close to the depot all the time, it doesn't matter that she doesn't move fast.
Other options for badly injured dwarves: Captain of the guard, baron/duke/etc. Try her as a craftsdwarf, if the supplies are close by, or burrow her next to your water-purification pump as a pump operator. You could just kill her off, but personally I don't like doing that. It seems wasteful.
I need to experiment with my arm/legless dwarves, see exactly what they can do and what they can't.