Sandy -
I remember a vendor with handbags with dogs on them at the Houston Quilt Festival a few years ago (and I am pretty sure the vendor was in Houston for a few years in a row). I bought a Christmas collar for one of my dogs that had bells on it from the vendor. If you are still interested in finding the vendor, you may want to ask a TQS'er going to the Houston Festival to keep an eye out at this year's show and grab a card if they see the vendor.
Speaking of dogs, there is a lady in Loveland, CO who designs paper piece designs of all sorts of dogs and I know she has been published in Quilter's Newletter in the past couple of years. I actually met her at her LQS in Loveland and she told me that she will custom design paper piece patterns based on a picture of my dog (a little pricy, but well worth her talent).
Good luck finding what you are looking for!
Mary Kay