Dog scared of everyone.

ORIGINAL: scottbeckerle

Even when I was holding her and he would pet her she was just shaking.

 
Bad move right there, if you give affection while she is shaking you are telling her "is all right to be fearfull, keep doing it" you are nurture the behavior, also if you feel bad about her thats sensed by your dog and it does not help either
 
Easy solution, make your friend to hold her favorite treat in one hand (maybe while he is seated in the couch) and have it there waiting for your dog to take her time to get closer and take the treat out of his hand, very very important that your friend does not pay attention to her at any time of the excersice, not even eye contact, let her take her time and repeat as many times as necesary, this way she will link your friend with a positive experience [] 

SO I am not sure what created the problem, but I can tell you what we have had to do in our home with our dog in order to get her to accept people.
 
Prudence is terrified of strangers and other dogs and thus was returned back to the greyhound rescue after living with a family for 6 months. She is a trembling wreck when strangers come in the house so we started earning her trust through liver treats. 
 
Whenever someone comes into the house, we have them go to the kitchen, open up the container of dried liver treats and give the dogs a couple out of their hand.   It only takes Prudence watching  JJ getting a couple treats before she is willing to come JUST close enough to grab it out of the strangers hand and run away.  She will then accept a couple more treats from them and may even come around them a few times to sniff them.  By their second or third visit she is crying at the door anxious for them to go to the kitchen and give her treats.  After a couple more visits she is comfortable enough to not need any treats. 
 
We have started to carry liver treats with us on walks so that if we run into a stranger, they can give her a treat too.  She has learned that anyone that mommy and daddy allow to give her a treat is an ok person and she is starting to do better overall with strangers the more positive experiences she has.
 
Also people who we want to her to accept right away ( like my step kids and their friends), we have them accompany us on a walk with the dogs and after a couple minutes we turn over her leash to them and by the end of the walk she has accepted the person even without treats.

She may perceive that he was the last person she trusted, and he let the rescue take her from him.  Who knows? Frankly, it doesn't matter "why" or what caused it.  It simply is.  Now, your job is to reiterate to the dog that this person is not scary, and is to be trusted.  One method is to have him hand feed her, and provide all her care for a week or two. 
If she is fearful, simply ignore it and go about your business.  If she is brave, quietly praise, or toss a treat on the floor to her. 
Avoid having anyone make sudden moves, make prolonged eye contact, or reach over her head.  Allow her to make the first move toward someone.  The person can hold a treat for her but shouldn't reach toward her to offer it - just toss on the ground and turn the body to the side.  Having people kneel is less intimidating to some dogs, but, again, no staring and no reaching.

Thanks alot everyone for your help I appreciate this.

You could have him sit on the floor with a yummy treat beside him, tell him not to touch the dog, or even look at the dog.

When we first adopted Odie, he was afraid of EVERYTHING.  Birds in the trees, leaves rustling in the wind, everything.  Anne recommended a book to me called, if I remember, The Cautious Canine.  It worked wonders.  He has made tremendous progress.  He still has a ways to go, but he has come a long way.  I remember posting here, when I got the book, that he was even afraid of the book.  []
 
The problem, as I see it, with having a fearful dog, is twofold.  First, I can't imagine life is very pleasant for a dog who is afraid of everything.  Secondly, if a dog is afraid of people, I am very concerned that he may bite out of fear.  Odie has never bitten but when we have strangers (to him) in the house, I have to be on guard, to a point.
 
Today, Odie is only terribly afraid of men, especially large men, who are on our property.  If he meets a man out on the street, he is cautious, but mostly he is okay.  He never has a problem with a woman, even if she just walks into the house. 
 
Now there are some exceptions to when he will demonstrate fear.  My step daughter came in from doing chores the other day.  It was cold so she was all bundled up with a scarf covering most of her face and bulky coveralls.  Odie barked and growled like he was going to whip her butt, then he retreated. 
 
I do everything for the Ode.  I feed him, I train him, I brush him, but let me come in carrying a large bag or box, and he will cower in fear.  Once in awhile, he will even pee. 
 
Strangely enough, he used to be afraid of trash bags too, but now he likes to play whenever someone has a trash bag.  We will get out a trash bag and say, "Odie, wanna play trash?"  Odie will give a play bow and the game is on.

Grab a copy of "The Cautious Canine" by Patricia McConnell.  There's good info and the book is cheap. www.dogsbestfriendtraining.com

First of all, it takes time.  It takes at least 6 months for a rescue to feel absolutely at home with you.  My pointer was very skittish with people when we first got her.  We respected her reserve and never forced her to accept strangers' handling.  If she was put in a stressful situation, she would never get aggressive, just shut down - like onone was home inside.

We Also took her everywhere with my setter.  She goes to obedience class and agility class where she gets to meet lots of people and dogs.  I insist that she is always respected and not petted unless she is comfortable.   She goes to the hardware store, the pet store and work with me.  When she has had enough, I let her find a safe space. 

She has come so very very far since we adopted her. Much farther than I imagined she could.  Her biggest happiest face is on the agility course.  She has gained so much confidence that I am amazed.  She is still a bit reserved with some people, but I insist that that be respected. 

Give her time and take it slow.  [] She's been through a lot.