I ran into the guards that trigger the start of this quest that they were looking for a strange dog around Falkreath and that I should speak to Lod the blacksmith for more information. Well, much to my surprise, when I went looking for Lod, I found him dead in the middle of town. Not my doing as it had only been my 2nd time in the town. I read else where that you could either run into the guards looking for the dog or the dog itself to launch this quest. Does anyone know where I can find the dog? I've looked everywhere in the Reach's region for it or am i just screwed?

walk out the back of the town the dog will show, you should know who it is

I walked out either side of town and waited for him and he never came around.

Just to tell you now if your char is a good little nine divines nord boy then this quest is a deadra quest if you feel like being smart and not wanting to get damned for eternity. It also involves bestiality.

Still haven't been able to find the dog. Even left my character unattended West of the city to see if he would show to no avail. Sadly it is the last of the Daedric quests I have left and would be a shame to have to start all over for this one thing.

its ok, after 1 minute with Barbas you'll literally try to kill him anyway.

970 of 1000 gamerscore is depressing though lol

You need to head out of town to the east. Just keep walking along the road and a dog will approach you.

Are any of these suggestions confirmed to have worked if you have the "Speak to Lod" quest but Lod is dead? Or are these just that, suggestions?

Speak to the blacksmith then search for the dog. The first time I played this quest I found the dog west, not too far from Falkreath.

Can't speak to him if he is dead.
He=Blacksmith=Lod

Oh, missed that part. Then I guess there's no way for you to complete that quest unless you're playing on a PC.