I've only had this explained to me a few times, so if anyone's more familiar with this story, please correct me! Anyway, this is the way to explain all the dinosaur bones and layers of Earth containing them:
So, once upon a time, long long ago but right here on spaceship Earth, but before the time of Noah, lizards were really, really big and humans lived a long time. What in the world could cause this? More oxygen, of course! You know how the Greenhouse Effect works, right? Think like that, only with a big layer of water surrounding the atmosphere, keeping lots of oxygen in. And that water was perfectly fine just where it was until God got mad and let it fall -- Noah's flood! Naturally, the flood made the Earth a little muddy. Reptiles got buried in the lowest layers of the mud because they were too dumb to find higher ground. The animals got buried according to how far up they were able to make it before drowning, which might explain the apparent evolution in soil layers - they're all really the same age, though. Oh yeah, and the antediluvian atmospheric oxygen content also messed with things like Carbon-14 content. All modern animals are descended from the ones taken on the ark... probably all the smallest models that were available at the time; I mean, if you drove a Ford Festiva, would you take a german shephard cross country or a miniature pomeranian?

Et voila.

(By the way, not even most of the Creationists I know would tell you this one, but it's definitely the most amusing/disturbing twisting of science I've been earnestly told. Sorry I couldn't tell it with a straight face... it's much more effective that way.)