Given my semi-lupine nature, it falls to me to address the issue of human-animal hybrids. (Also, Ezra is a little busy today and tomorrow, so us weekenders will be filling in.) Let me point you to Pharyngula, who explains that human-animal hybrids are a lot more innocuous than they might seem. Putting a couple human genes in mice allows us to generate an animal model of how Down's Syndrome works. These mice aren't the Rats of NIMH or freakish mouse-men plotting to control the global cheese supply -- they're basically ordinary lab mice with Down's Syndrome. Figuring out how the disease works in mice will help us cure it in humans.
The general point to be made here is that science fiction far outruns science, and people shouldn't freak out when they hear astonishing descriptions of scientific discoveries. The media will make science seem more sci-fi than it really is (cloning is another example) to generate exciting stories that sell nicely. On the public's side, there's a large stock of exciting story elements from comic books and movies that guides the popular imagination of real discoveries. This creates a lot of confusion and error.