Our cat needs to see a shrink!?

if archie was close to your dog he's probably sleeping in the kennel because it still carries his scent. If he were an indoor cat i'd suggest using feliway to calm him down while he adjusts to the new dog. This is a plug in or spray which releases cat pheromones to calm your cat, it's not noticable to humans. You could still try the spray in his kennel or bed so he feels he has a safe place to escape to. Good luck, i hope they settle down together soon.