If it can be done, you can bet it will be done. And my guess is it'll be the Koreans or the Chinese who do it first.
Chimeras Chimeras in research
In biological research, chimeras are artificially produced by mixing cells from two different organisms. This can result in the eventual development of an adult animal composed of cells from both donors, which may be of different species — for example, in 1984 a chimeric geep was produced by combining embryos from a goat and a sheep<2>. A chicken with a quail's brain has been produced by grafting portions of a quail embryo into a chicken embryo.
Interspecies chimeras are made in the laboratory. In addition to the famous geep, there are rat/mouse chimeras and a rabbit/human chimera that was not allowed to develop beyond a few days. Like hybrids, the parent species must be closely enough related in order to produce live offspring that are relatively healthy. Chimeras between different varieties of mice are relatively common in embryology. By fusing cells of differently coloured or otherwise genetically distinct mice, researchers have been able to see how embryos form and which structures are related (arise from which line of cells).
In August 2003, researchers at the Shanghai Second Medical University in China reported that they had successfully fused human skin cells and rabbit eggs to create the first human chimeric embryos. The embryos were allowed to develop for several days in a laboratory setting, then destroyed to harvest the resulting stem cells. Increasingly realizable projects using part-human, part-animal chimeras as living factories for producing cells or organs for xenotransplantation raise a host of ethical and safety issues.
http://en.wikipedia.org/wiki/Chimera_(genetics)
Dog/human? Check out the picture here!
Parahumanhttp://en.wikipedia.org/wiki/ParahumanSome great links below it too.