
Hi Steve,
Pressuring her when in a fearful state will only exacerbate the problem as will consoling her / picking her up etc. The best approach with a shy, timid dog (regardless of age really but especially in youngsters) is to gradually habituate her to accept and eventually ignore the objects of her fears. Take her to somewhere that is relatively busy but not crowded, find a bench/wall/outdoor cafe (

cold, but less so where you are!) and let her watch the world go by and listen to strange noises, weird sights and smells etc but all at a
safe distance. Try to do this day in and day out for a few weeks - perhaps find say two favourite spots and alternate them each day. It can be a slow progress but pays off hugely if you put the effort in. You may find she copes more quickly than that and can add a third venue to your regime ;)
Find her personal comfort zone and stick to introducing her to new things without letting anything or anyone encroach in that space around her she needs for the moment. Gradually you will find you're able to decrease the distance between her and the sights, sounds, people or activities that stress her. Ignore any nervy behaviour and praise when she is calm and relaxed in each situation. If you find that she is becoming more forward with passers by, have some treats in your pocket which you can discretely pass to them to drop down at her feet - not to offer from their hand initially as this may be too much for her.
Basically, watch her reactions and if you see progress don't push too quickly onto the next level but if you find she's lapsing back from noted improvement, return to the previous stage with her.
As well as the above, try and locate a good puppy training class in your area which works on positive reward based techniques only - this will help greatly towards building her self-confidence and socialising her at the same time with other dogs and their handlers.
HTH a little. You'll get there with patience. Good luck, Teri :)