Thanks for the replies! What I find so interesting about this behavior is that we are generally told that dogs depend on scent & sound for recognition, but this just shows that under certain circumstances they depend on their vision to assess the situation regardless of any particular scent or sound. Of course in this case the whole house probably smelled of enemy dog to them

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But I do belive that at times my yorkies will watch TV and react to visual clues, like a nature show about wolves or dogs in high def... But that is a rare behavior, and they soon seem to figure out that its not really another animal.