Did the Air Force come out in '97 and directly say crash test dummies were included in this failed project Mogul? I seem to recall hearing that, not sure if it was from military spokesman.
No, the Air Force never said that. The 97 report was titled Roswell Report: Case Closed, and was a follow-up to the 1995 report in which they produced the Mogul explanation.
The part of the report involving crash test dummies is probably the most incorrectly quoted and poorly understood documents in all of ufology. It is misinterpreted by nearly all UFO investigators, authors, and bloggers - including the hosts of The Paracast.
What the report says is simple: mainly that during the 1950's and 1960's were numerous crashes of experimental aircraft, high-altitude NASA experiments using anthropomorphic dummies, and emergency rescue drills performed by the U.S. military. Lots of witnesses to those activities, and lots of possibility for mis-interpretation and rumors to spread, so that once the Roswell incident re-surfaced in 1978, people started to confabulate memories of accidents and crash test dummies with the Roswell legend.
Ufologists hate this explanation because it attempts to reconcile reports of alien bodies with an inconvenient fact: that the original Roswell incident involves ZERO REPORTS OF ALIEN BODIES. Refer to the original source material: none of the firsthand witnesses to the Roswell incident mentions aliens. This is also explained in Roswell Report: Case Closed. Stories of alien bodies only show up decades later, and they are second-hand at best with zero corroborating evidence.
Of course, anyone who studies Ufology knows that earlier reports of alien bodies did exist, but had nothing to do with Roswell. The earliest of these is the Frank Scully account of the Aztec, NM crash. There is also the 1953 Kingman, Arizona story(a favorite of mine). Neither of these were mentioned in the Roswell Report, and my explanation for this is simple: they didn't know about them. The Aztec and Kingman crashes were still rather obscure at that time, and I doubt the Air Force had any Ufologists working for them in 1997.
Still, I believe the Roswell Report is an honest effort by the US Air Force to explain the mythology surrounding an event that they themselves were never even involved with, since the Roswell incident occurred before the Air Force had even been established. I also grind my teeth a bit when I hear it criticized by supposed UFO experts who, by misquoting the report, give me the impression that they never even read the damn thing.