whaha!!! I had this exact problem, but with 4 cats. They get along with my non DS dog, but with Odin it was a different story. We've had Odin since Dec 27 and for about 2 months it was chaos with the cats!! All he wanted to do was chase them and my kitties were very afraid of him.
They hid all the time and when they came out we walked Odin on leash near them.
In order for Odin not to stare and want to "get" the cats, we would walk him on leash in the house near the cats and told him "leave it" and when he looked at us or away from them, we would mark it and treat him. (high vaue treats) We never made a big deal of it when he lunged for them on leash (because he did), we just calmly said leave it, etc, with the treat.
So, fast forward to now, and cats are not so afraid of him anymore and Odin pretty much leaves them alone. If one runs, he will chase, but his recall is good and I just call him back to me and when he comes I marked it and gave him a treat. Now he flies to me, because he's never sure if there will be a treat or not.
This took alot of patience and repetition, believe me.
Once both of them realize neither are going away, it will work itself out. I was so scared that Odin was going to eat them, but it was more about the chase and making beautiful art work on mommy's nice wood floors
That's my story and I'm sticking to it!! Seriously, I had no experience with this and everyone's suggestions and experience on here helped me immensely.