I've been looking at the list of shouts and videos of them and just wondered how the animal allegiance shout actually works...
when you use it, does it magically appear animals from out of the nowhere or is it just that you have to be around animals for them to come to your aid?
And does this shout call a dragon to your aid too?

I beat the MQ so I have Dragon Call as well as Animal Allegiance, so I can say what I know about them...

I learned that Animal Allegiance only works if animals are around you and you are being attacked. They have to be animals not aligned with anything in particular, if that makes sense. Here's an example: I was fighting some soldiers near a roadside caravan that had an accident. Their horse was the only animal around. I used the shout and their horse glowed slightly but did not move to attack me. I'm not sure if it was because it was aligned with them or domestic animals cannot be called. You'll probably need a wolf or something in the area while you are being attacked by something for it to help you.

Animal Allegiance won't call dragons or get nearby dragons to assist you, either. They are sort of above the animal category. I mean, they talk to you in their language and your own. Bi-lingual intelligent creatures classified as mere animals? Ha! They would take offense. =) But yeah, you need Dragon Call to summon a dragon.

Its simple. If there is a animal near by. You shout. If you get in combat it is a ally. Which means you can shout. A mammoth will be your ally. It will help you gank giants/mammoths. Then while its still under your control you can start killing it before it becomes hostile.

thats awesome. thank you.

This video pretty much shows the extent of Animal Allegiance.

http://www.youtube.com/watch?v=sH-_uv26E_A