Poor thing sounds like she was not socialized well at all where she was raisied. Thank goodness they didn;t breed her, but I worry about the health of their other dogs.

Have you gone to an obedience training class with her? It is helpful with socialization, and will strengthen the bond between she and you. She sounds very insecure, and remember, you and your husband have two years of her prior history to overcome. Patience is the key, and repitition of training - you can both do the "exercises" from class with her.

Her shyness will decrease somewhat as she grows more secure, but she'll probably never be a social butterfly. But it sounds like you and she have bonded, and that's a good start.