beedizzle is right. you have to get all the alta before b8 and finish making 'my house' then you go inside UPSTAIRS. a little cutscene occurs and then you are kicked out. go back in and go up the stairs inside and the cat will be there instead of in the barn. press [] and use the changing potion. voila! Xiao is now your new best buddy (not really but it's a nice thought ;)
My sig was going to take all 400 characters but that seemed like too much work, so I'll just squeeze the lemon. What lemon you ask? Why, the lemon that is my brain and the lemonade is this stuff you're reading. I can't do anything other than talk about this so I'll try to talk about something else? How about how some dude named cowboop on Kongregate.com who couldn't do anything but squeeze the l