@mmn @dragnucs Also, what you used as an example of a failed theory of evolution is phony. Noone has ever said that a mammal (wolf) can/will evolve into an insect (fly).
Either way, it took hundreds of millions of years for them to reach the state by which we know wolves and flies. The time it took the wolf-like ancestor to turn into the wide variety of dogs is just in some thousand years. So evolution _of_ species is very different from adaptations _within_ species.
Remember that every lifeform ever instantiated (:P) is always the offspring of its parents (or other kind of life-giving predecessor) - and thus the same species. That's pretty hard to understand, I admit, but given the timescales of millions of years, it is pretty easy to understand that small mutations (adaptations) can eventually cause huge differences (new species).
To put stuff into perspective: Human written history is still much smaller than the time it took wolves to become dogs.