[babyray]

Well- I have gotten a few questions regarding this so I'll try to explain-sorry for the length!
What I do for my clients whose dogs have similar problems is what I call "Cookie Brainwash". You must be willing to spend lots of time on this, and as simple as it sounds-it does work.
You must commit to meeting 4 or 5 people a day with your dog-not always the same people. If you have to repeat people, spread it out as far as you can, otherwise you end up just desensitizes the dog to those particular people. You want to brainwash the dog that all people he meets are positive. We want the dog to look at people as giant cookie dispensers for a while.
If your dog is not approachable, spend some time determining the closest distance that he will tolerate people, and reward him for tolerating them and focusing on you while the person is present wthin that distance. Gradually bring the person closer and reward him for tolerating them BEFORE he reacts to them. If he looks at them and you can easily focus his attention back on you, reward him. Gradually bring the person closer-this may take weeks-until they are close enough for you to hand them a cookie and have them feed the dog without looking at it, and walk away. While you are reaching out to hand them the cookie, make sure you are otherwise controlling your dog by distracting him with another cookie. Do this with 4-5 people a day until the dog seems comfortable and is looking interested in meeting the person and getting his cookie-sometimes weeks, sometimes days depending on your dog and how often you practice. Progress to quick glances by the person, followed by longer glances, and when he actually seems glad to meet people, have the person begin to pet the dog, BRIEFLY, calmly and without staring, while giving a cookie. This then progresses in turn to more normal petting-but ALWAYS keep it brief-even when he progresses to the point where he looks happy to be petted. Prolonged petting can trigger his intolerance. You may never completely "cure" him but you can make him safe in public and learn to have a more positive association with people.
It does work!