
"Correct me if I'm wrong but when you clone using anything but sperm (or any other cell with an intact copy of the animals DNA), you get an animal born of the same age as the one that died. Thus if the dog was 10, your new pup will be born with DNA that is already 10 years degraded. This is why animals such as dolly the sheep showed signs of advanced age early in life."
Well, not necessarily.
To the best that anyone can figure it out, "age" in the aging sense is tied to the cells' telomeres. Basically each cell has a counter, how many times it can divide before it can't any more. When more and more of your cells hit the limit, more and more damage can't be repaired, and eventually you die. That's old age.
This seems to be, among other things, a defense against cancer, btw. Cells go out of control with division all the time, but then they hit the limit and stop. E.g., HPV reprograms cells to start dividing out of control, but you get at most a wart because they hit the limit. To get a full cancer, the cell _also_ has to accidentally activate one of the two known mechanisms to increment its counters right back.
The thing is, though, cells have their own mechanism for that too, and naturally produced embryos get their telomeres padded right back to full.
So you're right that early embryos did show that problem. They inherited the used up counters of whatever cell they were made out of. I _think_ they figured out how to fix that problem, though.