Made some great progress today. I got off work early for something unrelated. When I got home, I put the dog on her leash and let the cat out of the bedroom. When the dog would lunge, I would jerk her back. It became quickly apparent the dog wasn't being aggressive, she just is extremely interested in him, and wants to play. So I just let them be. If she got a little too rough, I would yank her back. I did this for about 15 minutes before I took her off her leash. After that I let her follow him around watching him play. She would try to play a bit, and then hang back. I've now been home for 45 minutes and I have them in the same room. She is laying on the ground chewing on her bone ignoring him, having exhausted her interest in him, and he is just exploring the living room like kittens do. There is no aggression at all, and they appear to be getting along fine right now. The dog is still extremely interested in any odd things he does, like suddenly pouncing for no reason, or bolting across the room. Other than that, the dog is fine with him. I'm amazed how quickly they progressed.