Interesting... I watched on Dog Whisperer similar situation and Maxi's cousin Maggie is pretty possessive too. If your dogs act like that you have to take your dog and put her/him on the back for a little while until they get relaxed and hold them gently letting him/her know that you are the boss and this behavior is unacceptable.Usually when dogs are submissive to others they lay down on their back so you just have to recreate this. Maggie was like that with Maxi until I got in between and let Maggie know she is not the leader,I am, I stepped towards her letting her know that is my territory and respect it. She got the idea pretty fast she is a good doggy. After I repeated a couple of time when she would grawl at Maxi, she was ok. She was playing with him and even letting him win in their wrestling game