I didnt mean to imply that a living dino would falsify evolution. For my own inner child would love to have a living breathing dino.
Me too.

But as I noted, a living dinosaur today would be much less prolematic for evolutionary theory than a Devonian rabbit or Permain chicken.
As far as archaeological evidence of man and dino, what about cave drawings found with animals that can only be described as dinos. Did they dig up the fossils and put them together as we have? So they would know what they look like. Or are they all part of the mass hysteria of creationism?
Well, here's the problem with that assertion by Creationists. None of the supposed dinosaur glyphs have the context that I mentioned previously. There are no evidences of spearpoint nicks on any dinosaur bone ever found (and to toss archeology into to mix, since humans supposedly had, according to Genesis, agriculture and animal husbandry from day 1, why were there any hunter-gatherer societies on the Earth at all... we simply don't tend to lose technologies we develop... especially simply things like harvesting and rasing livestock) or any horns, bones or hides taken from human settlements or trash middens. Why is that?
Also, we have a number of cross cultural fantastical creatures that show up in mythology like Shedu and Centaurs (half man, half horse), Garuda and Harpys (half human, half bird), Nagas and Questalcoatl (half man, half snake). And I'm not even mentioning the numerous examples of petroglyphs that look like aliens in spacesuits. Are all those glyphs, cultural references and protrayals of actual beings, or the imagination of the artist?
Continuing with the living dinos how is it that nearly every culture from all over the world have dragons or similar creatures in it's history? More mass hysteria?
I have a TE friend of mine who is of Chinese extraction and he is continually bemused by Creationists who assert that European dragon tales are evidence of dinosaurs because in Chinese mythology dragons are serpentine, but tetrapodal and fly not with wings, but with spiritual power and are good omens, not harbingers of doom. I hate to be so harsh, but that blows your "similar" assertion out of the water huh?
And sorry for being to general, if species are constantly changing over millions of years, why would 2 species still be around when one has evolved much further than the other. ie Neanderthals were around when we hit the scene yet we are the ones here. Did we commit genocide or did they simply die out? As far as human and ape do you suppose that they are still around because we are in a transitional period where the apes could be extinct in the future?
The last question first. We're in a period where our fellow great apes are going extinct, but not because of any (technically) naturally selective pressure. The pressure for their extinction is us. We're destroying the Orang environment in Indonesia. We're doing the same with gorillas and chimps in Africa, but the added pressure of "bush meat" and trophy hunting makes their situations all the more precarious. Ultimately, the survival of our fellow great apes might not come down to environment (technically), but our intervention.
Back to your question of why 2 species would continue to be around... why wouldn't they? Unless, as you noted, one actively tried to eradicate the other, they would just continue to exist. And therein lies the environmental aspect of natural selection. It's entirely possible that Neanderthals existed in ever smaller populations after their Pleistocene hayday had passed, but that competition with Sapiens, combined with their specialization (very small clan social structure) sealed their doom. Back to the possible, there might have been a time when Earth was populated with Erectus/Ergaster, Neanderthal and Sapiens simultaneously... and back to your living dino issue - I would love for us to find (at least in the "enlightened" time of 2008) a living Erectus or Neanderthal, if anything for the DNA they could provide us.
For the reciprocal question, my grand parents didnt die because a) We are the same species or what ever it is called. and b)According to evolutionary theory several generations are not enough to make the change, it would take millions of years.
Wow that tree of life site is interesting 3 pages from alligators to ants. Interesting. This may take me a while on this link

But I dont think it's going to answer my question of how the transitions are made. Is it something that is inherent in DNA? or do we not know?
Again, refer back to what I mentioned about how somthing that is X will only give birth to an X that might also be a Y, but never a B. And how that Y might give birth to something that might also be a Z, but will never be a C. Ugh, which reminds me of a note about falsifications of evolution I forgot to mention earlier.
If a trout was found with fur, evolution is done.
If an iguana was found with boobies, evolution is done.
If a sea cucumber was found with a vertbrate brain, evolution is done.
If a bird was found with arms as well as wings, evolution is done.
If a human was found with a chitenous exoskeleton, evolution is done.
All of those things would be undersandible within Creationism, but would utterly falsify evolutionary theory... and yet we never find anything that doesn't fit.