This thread on the subject contnued for almost one and a half years.

Here is a link that might be useful: Anybody compost dog poop?

Here's how I compost all of the poop (I also use premium dog food) from my eleven dogs:

About 5 feet away from my ornamental trees (to avoid hitting too many large tree roots), I dig a hole approximately 12 inches deep and 12 inches wide. That is big enough to hold all of the poop for approximately a week. I don't add anything else (have a separate compost pile for everything else). Once the hole is full, I cover it back over with the original soil so it resembles a large mound and dig a new hole about 2 feet away.

As the poop breaks down, the mound will sink on its own without any additional work from you. The tree also appreciates the nutrients. Best of all, the worms and other composting helpers will follow the trail of poop from hole to hole around the tree. By the time you get all the way around (provided it's a good sized tree), the original hole site will be fully composted and ready for refilling.

Just one word of caution: Make sure to do this around ornamental trees and bushes only. There are many who believe that composting dog poop around fruit trees can cause contamination of the fruit, even if your dogs are perfectly healthy. It's just not worth the risk either way.

Happy composting! :)

PetBakery, your system sounds temptingly simple. Do you think it would work with cat wastes too? An indoor cat generates not only poop, but clumps of pee too (in the scoopable litter). Would the urine hurt the trees, do you think, or repel the worms?
Also, do you cover the hole with anything temporarily before refilling it with earth?

An indoor cat generates not only poop, but clumps of pee too

Use wood stove pellets for cat litter, and everything is biodegradable.

For a cat, I would take a look at the information on the litter bag first and make sure it would benefit your yard instead of hurting it. For example: If you have clay-packed soil like I do, I certainly wouldn't recommend burying a clay-based litter into it. Other than that, you should be fine.

I don't cover the hole with anything as it's filling. The dogs leave it alone (although I've heard of some dogs getting a taste for feces. ick). Even in the middle of summer, I didn't have many bug problems. The only modification I make in the summer is to dig the hole a bit shallower so it fills up quicker. With this many dogs though, filling it up quickly isn't exactly a problem. ;)

I've also been known to dump rotten apples and such found around the yard in with the poo. The native worms seem to like the system.

My latest idea: I'm going to concentrate all the "contributions" over the winter in a specific area that's never grown grass well and try sowing pumpkin seeds there in the spring (ornamental only, not for eating). I figure the pumpkins will enjoy all the rich nutrients and I'll be ready for next Halloween.