how was this done?

see attachments

That's really well done. They did it by using feathering to cut our the human shapes: this allows them to blend the eyes and lips into the dog.

Then they used a layer blending property (most likely) or a feathered layer mask to ad the dog's fur to the human features.

The most difficult thing with a project like this is finding two photos that are lined up properly, and that they are have nice resolution like that dog did.

I tried doing something similar and didn't come up with good results.

Actually, I think that's really on the right track. Don't forget that dogs have really big eyes (IMO) so you should make the human eyes a little bigger. I think the technique is spot on.

Since NullZilla won't say thank you for your help Stinko, I will. Thank you. That was some quality info.

Yeah, I forgot how I made that one though. I tried it again with a cat and came out terrible.

Oh and sorry for not saying thanks, I could of swore I did. I've been really busy latly with stuff (I am getting a sister )