I guess we have two different issues. The first, being at the obedience school. There were so many dogs there, and while my daughter was training Honey, I was working with Lilly. We had discussed this prior to signing up together and the trainer really thought Honey and Helen would be ok. Perhaps if I had been handling her, things might have been different.
As for the nervous behavior, I usually try to reassure her that everything is ok, but I don't think I am coddling her. Should I scold her? Maybe she needs to know that I am unhappy with her when she acts like that, rather than my trying to convince her that everything is ok.
All of these responses are good and I appreciate all of them. I am going to have to discipline myself to spend the necessary time and energy to work on this problem.
Keep the suggestions coming!