This is something I'm considering playing around with, so I thought I'd compile the resourcez I'm finding on my journey through old sitez. I've never done any hexing before, so it would be an interesting adventure.
Background: If you already know about hexing, skip this. "Hexing" is the fan term for editing a Petz breedz file (or individual petz) to make a custom breed. Many people developed helpful guides and tools to make this easier; you don't need to know programming to edit a Petz file. You do need to understand that visually, petz are made up of ballz and linez. You can see the ballz easily when you look at differently colored areas. Linez are more visible with legs and such, keeping them from just being floating ballz.
Some hexed breedz merely change the color and textures already on a pet breed. Others add more ballz and linez to create unique shapes, such as wings.
The LNZ portion of the breedz files specifically contains information about ballz and linez and is typically the focal point of hexing.
Carolyn's External LNZ: [Catz 5] [Dogz 5]
Carolyn has far too many resources about LNZ scattered around for me to link, and I doubt I found them all. The external LNZ (and versions for P4/3 exist) she created are breedz with the important LNZ portion taken out into a format that can be edited directly in Notepad (or a similar no-formatting word processor). If you don't want to download a program to edit files, this method is for you. However, more knowledge of programming or formatting would be helpful.
[LNZ Pro]: a program developed by Sherlock Software to make LNZ editing in Petz/Babiez/Oddballz easy. Should be far more intuitive than just editing the files directly. Easy to make non-overwriting breedz.
[Petz Workshop]: a program developed by Sherlock Software with 3D editing of Petz breedz. Appears to have better visual feedback than any program. However, also out of date?
Other Hex Editors: [Resource Hacker] [Hex Workshop]
Apparently, any hexadecimal editor can get you into the Petz files in order to edit things. It sounds like Resource Hacker was common before LNZ Pro. These sound buggier but have the advantage of working with files outside of Petz.
[Carolyn's LNZ Explanations]: they take you through sections of the Petz files and explain what each piece of code does to help you know what to change.
[Pet Editing Manual]: a downloadable help file with organized sections explaining LNZ files. There's also some discussion of methods and overall information.
[VPZ's Hexing Process]: an explanation of how they personally do their hexing with Resource Hacker.
[Raven's Petz Place]: several hexing tutorials in the menu on the left. They uses Hex Workshop and go over some quick and helpful things.
[Filthy Hippie's Petz Workshop Tutorial]: quite helpful run-through of Petz Workshop.
[Petz Color Chart]: all the colors a pet can have plus the numbers assigned to them for hexing purposes.