help with dog who keeps running away when i try pick her up/pet her

Woobie was very skittish when we got him and especially so with my son.  He spent hours sitting with his back to him with chopped chicken in his hand.  Later, as Woobie began to trust him a little more he'd hold one hand out without food and the other with food closer to his body.  That way, Woobie would have to brush against the empty hand in order to get to the one with food.  My son would hold onto the food a little longer each time so he had a change to pet on Woobie's neck a little while he took the food.  He also avoided direct eye contact with him during the first couple weeks we had him so he wasn't intimidating to him.  It might just take a little while to work up to her letting you pick her up.  Make sure you're down on her level and not bending down over her which can be intimidating and take it slow and build up a little bit at a time.  It sounds like she trusts you alot already, it might just be the posture you're in when trying to pick her up that might be scaring her.  Can you put some sort of step stool or ramp so she could get on and off the bed on  her own at her own comfortable pace? 

Your pup sounds like she's got a bit of an attitude!  I've got a quick fix for you, and one that will take a little more study and work.

Just from your description, it sounds as if she's dealing with the changes in her life by making her own rules.  Some dogs cope that way.  It's very normal.  She is probably a clever little thing, and you will get a hundredfold return on any effort you put into making your relationship more of a partnership, and less of an episode of "Let's Make a Deal."   

First, you need to get a crate if you haven't got one already.  You will crate her when you are not able to be with her.  This is only temporary.  She may kick up a huge fuss about it (I'll guess that she will, in fact).  Be strong, and don't worry about "training" her to the crate, trying to make her like it, giving her toys and treats while in the crate, etc.  Pretend that she is ill and needs to stay quiet in her crate, to save her life.  Judging from her condition when you got her, I'd say that isn't far off the mark anyway.

Second, write up a schedule of when you will spend time with her.  Again, remind yourself that this is a life-saving operation, and that it's temporary.  Probably no more than two weeks.  With that in mind, dedicate as much time as you can spare to time with her.  Write what you will do and when you will do it.  Include walks, play time, training, feeding, bathroom breaks, and just time hanging out.

When she is out of the crate, you'll have her on a leash.  Always.  And the leash will be attached to you.  Always.  Be very, very careful that she has enough leash to get out of your way while you go about your daily business - she is tiny enough that you could lose track of her and injure her accidentally.  I'd recommend using a harness rather than a collar for this.  but it's important that she not have the opportunity to wander off and amuse herself apart from you.  You must become the most interesting thing on this planet.

It shouldn't take longer than a couple weeks.  After that time, start working in some sessions where she drags the leash in an area where you can corner her easily (use a much longer line for this, maybe twenty feet - I use clothesline for this stage since it's light and doesn't snag on things easily).  Work on a recall - I'll get to the formal training part in a second.  Give her more and more freedom and reward her obedience with even more freedom - but always with the safety line.

For formal training, I recommend Debbie Wood's Little Dogs to anyone with a toy breed.  It's fantastic, practical, and fun, and covers all the challenges and joys of sharing your life with an itty-bitty dog.  She gives step by step instructions on manners training, tricks, and troubleshooting some of the unique issues of little dogs like housebreaking and "napoleon syndrome."  http://www.dogwise.com/ItemDetails.cfm?ID=DTB796

Good luck and God bless for helping this wee "terror."