It's an odd combination really. Even though it's been seen by numerous people, it seems like something out of a bad acid trip.
Here is a small snipit about the beasty (from here):
A Tatzel worm is a dragon-like beast with the head of a cat. The creature bleeds green blood instead of red, it hibernates during the winter, and sleeps in crevices on mountain sides. It is reported that the worm lives in the Alps mountains areas covering part of Austria, Bavaria and Switzerland. These creatures defend themselves by expelling poisonous fumes that are capable of killing a human . Since the Tatzelwurm has been described as poisonous that it might be a relative of the Gila monster, one of the very few poisonous lizards in the world. Gila monsters also have "fat" tails that closely resemble those in illustrations and reports of the Tatzelwurm.
I will also mention that most account of the critter describe it as having only two forward legs.