Very cool, I was talking about this just the other day (although this isn't the article I originally saw :/).
These guys want to create a transgenic human stem cell by inserting a human nucleus (DNA), into a cow egg that's previously had it's nucleus removed. You can then grow the egg to a very early stage of development (it'll just be a ball of cells; a ball of cells is not a fucking baby) and recover the embryonic stem cells.
Hay, lets not entertain the idea that what they'll end up with is a human-cow hybrid. It doesn't work like that. The nucleus will contain's human DNA only. The only "cow" DNA remaining in the egg, I would assume, would be mitochondrial DNA. The only DNA in the cell that makes it a cow, human or whatever is that contained within the nucleus.
It's true that mitochondria can communicate with the nucleus (as far as I remember), but mitochondrial DNA only codes for mitochondrial proteins. In other words, I can't see how the transgenic stem cell would produce any natively cow-like proteins that would make it look anything other than human. Although that wont stop you from making up stupid words like "frankenfoetus", will it? You dumbass fuckwit.