IT'S A DOG-EAT-DOG world out there. And a tiny software company called Domestic Funk Productions, based in Bath, England, is giving children a playful way to look at life from a dog's point of view. Its Personal Automated Wagging System, or PAWS, is a CD-ROM game based on the illustrated children's book, How Dogs Really Work!, written by Alan Snow. In this whimsical doggie simulator, which runs on both Macintoshes and IBM-compatible PCs, kids can search for bones, bark and growl, and chase cats and mailmen. If the electronic canine's strength runs low, it falls asleep and experiences weird doggy dreams such as giant dog-chasing cats.

Maybe the game is lost on grownups, but PAWS has won the distinction of Best Children's Title at the 1995 Milia Multimedia Festival that was held in Cannes last January. The $39.95 CD-ROM won't hit U.S. shores until April, when it will be released by Digital Gardens, the multimedia arm of music giant Virgin Records America Inc.

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