Well, here's a few sites I found on using epsom for dropsy. As you can see, many recommend this, but some don't. I just pulled the first three that came up.
http://www.aquarium-pond-answers.com...th-dropsy.html
*Perform a medicated bath with Methylene Blue and Kanacyn. To prepare this bath I use 1 teaspoon 2.303% solution per 5 gallons (double dose) in a bath of aquarium water from the tank the fish you wish to treat came from, I usually use about a ½ gallon of water, however you may use less. Measurement of the Methylene Blue does not need to be precise as this bath should be used for about 30 minutes (although do NOT overdose). Make sure you keep the water in a warm area, as in a cold room the water temperature can drop rapidly which would stress the fish. As to the Kanacyn, I generally have used twice to four times the recommended in tank strength in these baths of Kanamycin.
I STRONGLY recommend the use of salts in this bath as well at about double tank strength; 1-2 teaspoons sodium chloride (regular salt) per gallon and 1/8 to ¼ teaspoon Epsom salt per gallon of bath water.
Do NOT pour this water back into your display aquarium when finished. This can be performed twice per day.
*Add one tablespoon of regular salt (sodium chloride) per 5 gallons of tank water and ¼ to ½ teaspoon of Epsom salts per 5 gallons of tank water (I prefer the use of Epsom Salts in a bath over the main tank/bowl as Epsom salts can interfere with the correct mineral balance in aquarium water).
http://answers.yahoo.com/question/in...8150759AAGEMw9
I would remove it to a hospital tank where you could easily dose epsom salt. This will draw any excess fluid in the body (which is dropsy) without the kidneys (which are likely already damaged if the fish has excess fluid). You could also treat with Kanacyn, Kanaplex, Furan 2, Terramycin, or similar medications. Use 1/4 teaspoon of epsom salt per 10 gallons of water and turn the heat up to around 75-80* and increase aeration.
http://www.nippyfish.net/dropsy.html
Dropsy is not considered contagious but the infection that caused it could be so it is advised that sick fish be quarantined in a hospital tank. It is also wise to sanitize any shared equipment like nets, siphons or measuring spoons with a solution suitable for cleaning aquarium equipment.
Because the success rate is so low it is entirely up to you to treat this illness. In many cases the treatment is so potent that medicine can cause even more damage to the kidneys. If you are sure of the cause then treat accordingly using the proper fish medication. In most circumstances the cause is not obvious. In these cases it is recommended to use a broad-spectrum antibiotic or a combination of a gram-positive and gram-negative antibiotics. This will cover a variety of common bacterial infections. I recommend a combination of Mardel’s Maracyn and Maracyn-Two. Kanacyn is also a very good antibiotic but is quite strong and may or may not cause additional damage. If you fish is still eating it will be more effective to soak some pellet food in a mixture of tank water and antibiotic and feed it to him. This will allow the medicine to take effect more quickly. This can be done in addition to the package directions.
Whether or not you choose to treat Dropsy it is very important to make your fish as comfortable as possible. Lowing the tank water level and placing plants in the tank will allow him easier access to the surface for air. Some aquarists will fashion a sling out of netting and place it just below the water’s surface allowing the betta to always stay near his air supply. Many medications cause dissolved oxygen levels to drop so adding an air stone may help replace lost oxygen. Rapid gill movement and gasping are signs of depleted oxygen levels. To relieve the discomfort of bloating add 1/2 tsp aquarium salt per gallon of water. This will help to draw some of the fluids out and relieve pressure. Epsom salt baths are not recommended because of inconsistencies in their success rate. As always never use table salt in a fish tank. Aquarium salt can be purchased at your local fish store. Most importantly, keep your tank water clean and stable and your temperature at a comfortable 78˚F [25.5˚C].