nice one dude.. cute dog..
I like that version MUCH better.
By blurring the background, you really make the focal point stand out.
Nice looking dog too!
Well it looks fake because there is no transition in the DOF blur. There has to be some point where the out of focus starts becoming in focus, and that is not going to be easy to acheive with a computer. You could just do a layers of masks and fade them out, but I wouldn't think it would be worth it. Just keep taking shots and working on composition until you get a camera that will allow you to use things like DOF to your advantage.
That looks pretty good. I would crop it in tighter to the dog and desaturate the background a bit.So I gave it a shot.. is this what you guy's meant?: