Do Dogs Understand Speech?

It's highly unlikely that dogs can understand language but did you ever notice how dogs seem to know when you're talking about them, even when you don't say their name? When my chihuahua is under the covers and I start talking about her she pokes her head out. I could be talking about anything and she'll be sound a sleep but when talk turns to be about her, there she is with a look that seems to say "you talking about me?" The other Chihuahuas I had in the past were the same way.

Here's another incident, my dog likes to sit on a chair in the living room and look out the front window, especially when she's expecting my brother. My brother was here yesterday, a day when he usually does not come, as he was on his way over I and my Mom began talking about him but we did not say his name. To my surprise my chihuahua stopped what she was doing (chewing her nylabone) and went and sat on the chair in the front window.

So what's with dogs, do they pick up some of our language without us knowing it? Better watch what you say around your dog.