Thank you all for your encouragement and suggestions! Ideally, I would definitely give space to Leo but the real question is if Leo is OK with the concept of space. As I mentioned in my previous message, Leo is a very "special" cat. He is sneaky first and foremost. He opens all doors and gates and anything in between. He climbs up ladders. He is very sweet and not agressive in any way. I know that if I were to put the doggie in a playpen, Leo would be the first one in there. If I place a xpen, Leo would be the first one to open the gate. I guess I just need to wait and see how things will turn out before making any judgements. Thanks all once again, it made me feel good to know that I am not the only one with a cat and a Yorkie.