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I would be realllll careful about it. (Well, actually I just plain wouldn't do it myself, but if *you're* going to do it then I'd suggest being realllll careful
)
First, you would have to stick with pallets that have very close spacing of slats - I wouldn't trust raccoons or foxes on anything narrower than 4" and even that is not an absolute guarantee. And second, you will want to inspect the fence closely, including wiggling on the slats with your hand, on a FREQUENT basis because different pallets rot out at different rates (in a way that, at least to me, is not always visually obvious which are going to be the 'losers') and as soon as the wood starts to rot around the nails, it becomes fairly easy for something to just rip its way right through.
I have a whole buncha pallets that I use in the barn for putting hay on, and outdoors for various things (or just stored outdoors), and I really wouldn't trust 'em for a fence that would have more than just decorative or windbreak function.
I wouldn't rely on chickenwire for the higher part of the fencing, either -- anything that can rip thrugh chickenwire will be able to reach above the level of the pallets and rip it apart *there*, too. Or just climb over or jump over.
So, I mean, it depends how seriously you want to keep predators out, but if the answer if 'fairly seriously' then you're better off looking for secondhand welded wire or used chainlink if that's what it takes to be affordable.
JMHO, good luck, have fun,
Pat