I thought I would update this thread.
DD is actively potty training (her choice not mine). She poops in the potty now. She really hated having poo in her diaper so I guess that is why she would try to take it out. So now we just put her on the potty and she does her buisness. She is 19 months old so I am shocked she does this. but I guess the playing with poop was the first clue she was ready? Not sure but I'm glad I am not dealing with her playing with it anymore....LOL