My friend has three Papillon's and they will chase the cat if it's out in the yard when the dogs go out. It just jumps over a little picket fence that's in front of the shed and goes back into the shed. The dogs can't get thru the fence. She has the shed like a living room complete with TV, so the cat is happy and safe.
The shed had an addition put up on the front to look like a little cottage. I'll see if I have any pictures of it. We go there once a month for play-date, then at my house once a month.
Yes, I would suggest having the little kitty spayed and give shots. She did that for her little wild puss!!
http://i14.photobucket.com/albums/a3...2June06021.jpg