My 8 month old GSD is heeling well on and off leash and I have been using the remote collar for more than a month. When she noses the ground while heeling I give a low level ecollar stimulation and then when we walk back over that area she will side step and avoid the spot where she was corrected. Should I be correcting her with the E-collar?

What you have done is accidentally created a superstitious association to a specific area with the E-collar. Your dog didn't associate your correction with her behavior, she associated it with the location in which the correction occurred so that's why she's avoiding it.

Using an E-collar for heeling and things like being distracted with such a young dog is likely confusing her. I prefer to use motivation to keep the dog's attention during the learning phase. She's very young and heeling with distractions is a lot to ask from such a young dog. I wouldn't use the E-collar for complex behaviors with an 8-month-old dog. I'm usually just starting to let the dog wear the collar and conditioning them to it at that age (or older).