Subject: Could DNA from ancient bones be combined with ours 2 create hybrid lifeform

I'm specifically wondering if a scientist had well preserved bones from an 
extinct race of humanoid "supergiants" could they theoretically:
1. extract DNA from the bones? and...
2. combine that DNA with human DNA in order to create a new lifeform with 
the combined traits of both "parents"? 

What process would be followed and what pitfalls could be encountered? 
Please assume that the means and technology to do it need not exist. IS IT 
POSSIBLE IN THEORY???

Re: Could DNA from ancient bones be combined with ours 2 create hybrid lifeform