advice about stray kitten

We have been taking care of a stray kitten(I believe he is about 4 months of age). He just likes to hang around the front porch which he sleeps under(in a little kitty house we gave him) and we feed him. He isnt scared of my sister or me, he lets us pet him and he rubs against our legs, but gets a bit jumpy around other members of the house. Sometimes we let him in the house for a bit and play with him when the dogs are in the backyard.

Now, I would really love to keep the kitten inside but one of our dogs is really "cat crazy" when any cat comes near or in the house. I was thinking of buying one of those cat cages and letting him stay in there for a while so our dog and the kitten can get used to each other and then after a while the kitten and dog should be able to tolerate each other. But, others where telling me its "mean" to put the kitty in a cage and he would rather stay outside. I dont like him being outside though because its dangerous... his mother had been hit by a car and I am afraid something bad may happen to the kitten. Bringing him to a shelter isnt really an option because the only one around here puts them to sleep if they arent adopted in a week...

So I am wondering if my idea of putting him in a cage inside the house for a while to introduce him to the dogs and other members of the house is a good idea?

What about crating the dog while the kitten roams the house?
It would be terrifying as a kitten to be "trapped" in a crate while a huge monster dog wanders around outside it or tries to get in the crate.

I agree with Mom of 4. The dog is (probably) bigger than the kitten and has the potential to do some damage (not that the kitten doesn't have the potential to do damage to the dog, too.

Your other option is to keep the kitten confined to one room until the dog gets used to the smell of the kitten, and then slowly bring them together, one step at a time.