Martha,
Most puppies go through "stages" as they age. In part it is an attempt to "learn" the "rules" of proper behavior. A dog that has areas that are "their's", like a crate or other protected space, may defend that space at different stages in development. Even young dogs will do this for a while and then stop for a while, it will usually show back up later (usually around 6 months and again, at a higher level, when they start to mature any where between 1-2 depending on the breed). We have gone through a similar problem with my BRT bitch. She is a much different dog when she is with me than when she is with my wife. She is much more dominant when she is with my wife, along with more defensive. The less attention my wife pays to her the more the defensiveness and dominance comes out. She will also "defend" me if she percieves a threat. An example is when my wifes Cousins visited. Their little girl was standing next to me trying to jump rope in the house. Ora snapped at her when her arm came up towards my head. It was a defensive reaction to a percieved threat.
Based on the desription of the dogs behavior I would tend to agree that this is a fear based behavior. I would also tend to differ to people that have actually seen the dog, over attempting to make a descision based on a verbal description.
I would take a multiple pronged approach to this. First Obedience. It is not too young to start this dog on learning obedience. At this age the puppy can be worked in obedience for around 15 minutes and 3 times a day. In addition you can spring obedience commands at different times during the day. Depending on the breed, clicker training is not necessarlily the best method for training. It works best with dogs that are a little soft, eager to please, and very driven for a reward (ball or food). The click becomes associated with the reward so that it can be used as a marker for proper behavior. You can do the same thing with your voice.
Even young dogs can recieve age appropriate corrections. A scruff shake is getting to the edge of effectiveness at 14 weeks. At this point you can start to use a mild correction on a flat collar. Just enough to break the concentraion on the behavior. As the dog ages you can move to a correction collar, like a slip or prong or even an e-collar (with a low stim method of training). The age to do this depends on the breed and speciefic dog. The harder the dog, the sooner you can go to a correction collar.
Start by positioning the puppy and rewarding the proper position with a treat. After the puppy understands the desired positions you can start to give mild corrections for not performing the task properly and giving an intermittant reward for the correct behavior. The other thing that will work at this point is a "self" correction for heeling exercises.
Teach the dog to pay attention to you. This is done by starting to teach the Heel. If the dog looks away from you change directions in the opposite direction that the puppy is looking. Make multiple direction changes, go no more than 5-10 steps in any direction prior to changing direction. If the dog forges (moves too far forward) turn around and go the other way or turn IN to the dog. Make a big deal about "stumbling" over the dog. Don't step on the dog, but act like you may fall on the dog. Most puppies are very concerned about this and will pay better attention to avoid this situation.
The third thing I would do is teach the dog 2 commands. The first is an "OK" command for people. Telling the puppy to meet another person. With a dog like this it needs some firm direction as to what is the proper behavior. You need to tell the dog what to do PRIOR to the dog making a mistake and then trying to correct it. If you tell the dog that someone is OK it should accept this. It also tells the dog how you expect them to act towards this person.
The other command is an "out" command. I use this a little different than most people. For me the out command is a little more global than the way many use it. The idea behind the out command is to tell the dog to stop aggression immediatly (I extend this to all behaviors, out means "Stop what you are doing NOW!"). Use this command in conjunction with the Meet command. If the dog acts aggressively after you have told it to meet someone, correct it and tell it to meet the person again. I would work with people that understand dogs and will be patient with a dog that is going to take some corrections. This dog should never control when the interaction ends, you need to. It cannot end with the dog acting aggressivly towards the person. This teaches the dog that it can control these situations by acting aggressively, that will encourage an escalation in this type of behavior. I would avoid children for doing this until the dog is more stable.
This dog needs a ton of socialization. It needs to understand that people are nothing to be afraid of. In fact this dog should never have a negative experience with a person. It will take some time but the dog needs to see people as friendly, petting machines.
Get a crate and use it to help control behavior. The crate should be placed in an area that the dog can observe what is going on. When new people come over put the dog in the crate and close the door before they come in. After 15-30 minutes bring the dog out and make introductions. This time gives the dog an opportunity to watch your behavior and see how you react to the person. That will help cue the dog as to what to do.
Dogs are very sensetive to body position and body contact. They are much more aware of where they are than people are. With this dog I would also teach that any type of dominating behavior is not allowed. That means that you go through doors first, the dog needs to move out of your way. Don't move out of the dogs way, make the dog move out of your way. If the dog "bumps" you with out permission, put it in the crate for 30 minutes. The dog will learn to stay out of your way, and pay attention to who is in charge.
Keep in mind that dogs need direction. If they are not directed as to what behavior is expected they will make their own descisions and that is bad.
If you can't be a Good Example,then You'll just have to Serve as a Horrible Warning. Catherine Aird.