Yeah don't go the poison route. It is nondiscriminatory, anything that a dog would eat, other critters will consume as well, and even if they are pain in the ***--antifreeze is a horrible way to die. Be discrete, know your laws, and if you plan to circumnavigate any of those laws be willing to accept the consequences if you get nailed. Family safety comes first. I'd set traps, on your own property only, and deal with them when trapped. If you can discretely shoot them (trapped or otherwise) it is effective. Get on the trapping forums and read up on the archives on how to go about it. See:
http://coyotesrus.proboards35.com/index.cgi?,
http://www.trapperman.com, for a start. I've generally made it a point to release a dog on my property from a trap once. If it shows up a second time it is history. If they are in my yard, lead poisoning is a guarantee. No second chances. I live in an area where this is both legal and accepted. You let your dog run in this country and it is a matter of when it is shot, not if.