Is this how your dog reacts to people? This is a video of Smudge at my great aunt's party (that was held at my grandmother's house). The kid's didn't help any, but I let them carry on for a few seconds just to capture a video example.
http://www.youtube.com/watch?v=FoQhI2zhzvE
Well after looking at the video,I took in alot of the activity that was going on around Smudge. The kids,the strange glasses,things being brought up over his head,quick movements..and a toy that talks. For me looking at it he is acting hesitant,but I don'tthink anything that is alarming. From what I have read,shelties are shy,but certainly outgoing once they are comfy.
If you look closely,Smudge does take his steps towards the young child,and his body language for a young pup,I feel is totally normal. He's inquisitive,his ears are not laying on his head in fear. He isn't even barking,which I think for a sheltie is quite amazing!
Trapp has only been home for a short few weeks,but even in this time he has been here,this past weekend when my son & Lynn,plus two very busy & small chihuahuas planted thier little bodies here,his first reaction was he wanted in my lap,and played the shy little one.
We took our time,reinforced the positive behavior when it happened,and within the first hour or so,Trapp was totally content getting off my lap,and investigating the situation.
What I did notice with Trapp,he made it quite clear that he was coming to me for reasurrance.
I loved the video,and Smudge is looking quite handsome for sure. It's amazing how much he has grown since I have joined the forum. Thanks for sharing



