I absolutely agree with Donna-well said!
I think that it may just take her some time to come around. Both my dogs have funny, explained behaviors like this-It's Milli right now who is flinching at everything, petting and picking up and whatnot. She never did this before. Emma HAS to be with DH at night, but LOVES to be with me in the morning. It's just her "time" with him and she gets grumpy if I interrupt that. Just give her some time, and work with her on walks and obedience to see if you can get her trust in you and her confidence back, and I really think she'll come around. Hang in there, Marci!
Layla...be nice to your mommy. She's worried about you and only wants the best for you. Please let her know you love her and that you trust her and think that she's the best mommy ever so you don't give her a complex

Your grandpa's wonderful, but you're mommy's girl, and don't let her think otherwise!