ok well good news...sort of. The lady admitted that she was wrong. The dog that she saw with her dog belongs to the people that live behind us. She just saw the dog at the end of "doing the deed" with her dog and when he left she saw him laying around it our yard (which he will often times do). I brought Mack over to their house and asked if they were sure he was the dog they saw and she said he wasn't and explained what the dog looked like so I told her who the real father was. False alarm, thank god!