Whew, I remembered my password!
I tend, on one hand, to agree with Jean. She's an old lady and with some interaction everyday, I bet she'd be happy. On the other, I definitely get wanting to integrate everyone. It is a hassle if you have to make a separate issue to go and spend time with a recluse animal.
As for cs/ds, for Chai, I think you started to fast. Cats are very territorial (more so than dogs) and taking her out of her safe spot was too much. I would start working in her space, without the dog. Also, I find that thinking of cats as prey animals will help you predict how they are going to act. In my opinion, as much as a cat is a predator, they're as much prey.
I would start super basic because you have a large chasm of Bad Feelings to cross. In her space, I would bring in a heavily scented dog item (his bed or whatever) and set it down on the other side of the room and treat her, if she's food motivated. Also, remember a lot of cats won't take food from your hand so you may need a tongue depressor to offer canned food or a plate that give her a lick or two from. I would move her close or the bed closer a little bit at a time, as long as she is comfortable. Take it away when done, especially if she got more nervous with it around. I would progress in this manner, and have Pixel on leash/covered crate in another area and reward Pixel for being quiet and reward her for any curoisty towards the door. She won't leave for awhile, but it's imperative that her safe area continues to be safe area and the dog is not allowed in.
Once she's comfortable, then maybe uncover a portion of the crate while she's having her evening constitutional and treat him for being quiet and progress in that manner a little bit a time. You really have to go very slowly. Cats don't do change very well (prey animal stuff).
The other kind of third option that I just thought of is teach her to come out of her room for a little bit every night while Pixel is stowed away, and then she goes back to her safe spot after a bit then Pixel can come out.
Anyway, I'm nearly sure none of this makes sense, LOL. I hope it helps a bit.
The important parts:
Go super ultra slow
Cats think/act like prey animals
Change = bad (for cats)
Cash, LT and Soda. And some cats. Cats that are mean.