[JoeyP]

Yes ... this is aggression pure and simple
and unfortunately You seem to be the object of her jealousy
She seems to view you as a possion and something she needs to guard

What you need to do is two fold
First you need to relieve her of her duties
You need to show her that when other dogs or people are around you
good things happen to her
at the same time when she DOES exhibit bad behavior
you have to amke sure that youre not reinforcing it

Exercises for you to do
Have her be on the couch with you
Invite your other dog over
If she attacks ...... NO! and immediately she is put down on the floor
Continue petting the other dog
when she acquieces say GOOD GIRL! and Treat her
Do the samething with your grandchildren but only after she is good with the other dog