In fact, no. I thought:
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×I had to show the cloth to the dog to sniff, but nothing happened; I then gave the dog some meat and tried again with the cloth but now I'm told that I have "no reason to do that again". And still can't enter the house..
Feels like this may be a bug, perhaps I had to do it in an earlier chapter.
For what it's worth, the thief never stole anything from me since I had nothing in the chest.. maybe for that reason the game things I've already retrieved things. Looks like I'll need to start all over again
Edit again - definitely a bug. I had one save from before I rescued Heime, and showing the dog the cloth there works. But not in my most recent save quite a bit later on.
[Last edited by TripleM at 12-29-2013 02:23 AM]