The proprietor of a psychedelic emporium called the Celebration of the Lizard didn't have much to celebrate yesterday. Thomas Norton, 22, was under arrest on narcotics charges. So was his girl friend, Sonya Atkins, 19, a clerk in the shop at 4844 Highland Blvd., Great Kills, Staten Island. Cops on Staten Island were pretty busy combating narcotics Friday night. Three other young people were nabbed in two other incidents. ... Norton and Miss Atkins told police they live together at 79 Armstrong Avenue, a few blocks from the store. Also living with them are two fierce-looking German Shepherd dogs a situation that posed a problem for police raiders. The cops had been keeping tabs on Norton since September. At 6 p.m. Friday, Detectives Gerard Aruta and Vincent O'Grady, armed with search warrants, started to make their move. But they wanted to make sure the dogs were hors de combat. Spot His Car. On their way to the Norton flat, they spotted his car in front of a grocery. The dogs were in the back. Norton came out of the store and the cops identified themselves. Norton graciously locked the dogs in the car and accompanied the cops to his flat. Miss Atkins was at home. In a garbage can, the cops said, they found about half a pound of marijuana and 200 pills. In a woman's cosmetics case, they said they found a few ounces of a white powder believed to he heroin. Aruta and O'Grady picked tip another suspect when they went to Norton's shop. ...