Okay, now this is at 1.30am don't forget so my eyes are already blurry, but maybe this is a bit better? Or maybe it's just the same.
I selected the red channel, copied to new layer, then used the transform tool to reduce the height a little bit.
Then I selected the blue channel, copied to new layer. Then with the arrow keys I moved it up and down until it 'looked like' it was in the right spot. I used a highlight in the eye to guide me.
Then did the same with the green channel.
Then copy all, merged and duplicated.
On the duplicated copy, I put a slight guassian blur. Then I added a layer mask, and painted out the eye, nose & tongue so the blur was taken off those areas. Then I selected the layer mask & guassian blurred again to feather the mask.
Then just a levels adjustment to increase the contrast a wittle bit.
Sounds like a lot of work for a tiny improvement but only took a minute or two, took me longer to write this reply...
//edit: It's easier to see the differences as a rollover image.
www.belladesign.com.au/pscworldcup/PSC_dog.html
I think it is better than the original but it's such a blurry picture I don't think you can get too much out of it.
Not necessarily another rot, just another picture! You can use the same dog! 
