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While test driving the latest version of iPhoto, we decided to use the new Faces feature on the dog Luce. Luce is in the iPhoto library of all the iMacs on the show floor.
While Luce is adorable, and we would love to take the pooch to the Mac|Life office and shower her with kibble and rawhide bones, iPhoto doesn't recognize Luce's cuteness.
We tried our doggy-faced experiment on two different machines, with three different pictures. The end result was always the same. The application couldn't recognize Luce's face in the iPhoto library.

It seems the algorithm needed to recognize human faces is different than the algorithm needed to recognize dog and cat faces. Hopefully Apple will recognize this huge bug in their software and fix it before the official launch of iLife '09 later this month.
Links:
[1] http://www.maclife.com/user/rbaldwin
[2] http://www.maclife.com/article/news/biggest_macworld_expo_disappointment_no_animal_facial_recognition_iphoto