Amazing how the cats
taught the dog how to chase them. Smart little things, aren't they?
I have six cats in the house and two dogs. The dogs had never lived with cats up until three years ago. Then they got a crash course on how to live peacefully with them. But, you have to do the introductions properly or it just won't work. As Marty11 said you have to have a safe place for the cats. It doesn't have to be half the house. It doesn't have to be even a room. What you need for the cats is a few places where they can get up high. A tall scratching post, shelves built up high on the wall, or even on top of the kitchen cupboards.
Here's a few sites to read to help out..........
http://leerburg.com/dog-cat.htm
http://cats.about.com/cs/catmanageme...troducedog.htm
http://www.fabcats.org/behaviour/introducing/info.html