[Brookef18]

I'm not sure if this will help but, if he is scared and you fuse over it he may think there is something to be scared of... When Chewy is scared and i know he is safe, i act very matter of fact. i try very hard(and it is hard) not to play into the whole...awww you poor baby thing.
i would try to have her meet people in smaller doses first... pet smart may not be to bad an idea but I wouldn't let more then one or to people pet her, just explain what is going on... and see if people will just talk to you and not pay attention to her... she may get the idea that people are not so scarey. You need to be very relaxed so your baby doesn't pick up bad vibes.
i worked at a preschool, and I was always told, you don't rush at the children, you let them come to you. if you are just there and quiet kids will check you out and it goes much smoother... It was ALWAYS TRUE! maybe it's the same with a pup like this. Best of lucK!