I got a phone call yesterday from the greyhound lady. She was all apologies for not having gotten back to me sooner. We are going to be allowed to adopt Bugsy. There is another problem though - Bugsy has shown interest in their test cat. He is going to be tested again. If he isn't cat approved, at least we will be able to adopt another.
I think it will be him though. If I can teach my cats not to chase my bird, I can probably teach the dog not to chase the cats. One swipe from Tabitha's claws could do the trick too. We will see.