I too don't think your over-reacting. When I'm walking Roxie and see someone approaching I just pick her up and keep walking briskly. I just smile and say hello but don't stop. Your body language can help give off some vibes. But if that fails...I tell them it's not a good idea to hold her that when she gets nervous or overly excited she pees. The pee thing usually works like a charm since no one wants to be pee'd on!!
