- chicken pox is airborne, and has a 2-3 weeks "lurking" period (can't think of the proper name, it's 2 am!!), so older daughter could be already infected!
but no-one can tell whether she is or isn't until she either starts having spots or you've waited at least about 3 weeks from baby's LAST spot appearing!
so baby is contagious as long as she has new spots appearing and older once are soft and/ or weeping.
when the spots start to dry and scab over they are not infectious anymore, but this is only true if there are no more new spots coming out!
and the answer is no, she can't come to play, if you want to avoid your family getting ill!
she could still be infected as some vaccinations don't take/work (shhh) and even if she doesn't break out in spots she could carry the virus and pass it on - no need for physical contact, she could get people ill just by breathing or sneezing or coughing! and you are not paranoid!
having said that I prefer my children to catch it as young as possible, as they won't scratch the spots and scarring is less likely, plus then it's done.
I'd be more worried about hubby catching it, for adults it's much worse, you get shingles (no idea what happens, but not pleasant apparently)
so tough cookies for your sister and your niece, they have to stay away.
(if she has a problem send her to me)