Sounds like Mike and Don hit the nail on the head. Teach pup to play in a manner that doesn't scare the kids. This also teaches the pup to obey the children, which pup needs to learn. This pup must learn that he is low man in the pack and will always be that way. The smallest of children will be above him and should be treated accordinly.
Building on what Kim has stated, I would (under careful supervision, of course) start having the kids feed the dog her meals as well. Have them hold the food bowl up until the dog obeys a sit/stay command, then they put the food down for her to eat. That way they are the ones controlling her feeding, which, I believe, will establish them as being higher in the pack order.
Eventually, and again under careful supervision, I would have the kids gently pet the dog occasionally while eating, as well as remove the food bowl during meal time, stand, have the dog do an OB command, then replace the food. Just be sure to only do it occasionally, and the kids never do it unsupervised, or to the point where they are teasing the pup... that will lead to problems.
I would also teach your kids the proper way to play with the dog as well... no puppy can be expected to behave if the kids are sreaming at her, mistreating her, etc. There should be established rules for 'play time' and proper treatment of the pup, during 'play time' as well as around the house in general.
Obedience classes are a great way for your kids and the pup to bond, as well as a great source of fun for everyone, puppy included.
Also be sure to get her a crate if you havn't already. Do a search here on crate training, some really great advice. If you do it properly, it will become her 'refuge', which, with screaming kids around her, I'm sure she would very much appreciate from time to time... <img src="/ubbthreads/images/graemlins/laugh.gif" alt="" />
The thing to is gain control of the situation. You need to start working with the kids, telling them what and how you want them to react when the puppy approaches.
At the same time start training the puppy to understand "Stop", "No", "Sit" and "Go to your kennel".
Then work on OB with the kids and the dog.
Show the kids how to issue these command, which lets the puppy know what u want from it.
I've seen kids read a dog when it bows to play, "No Rover I don't want to play, go fetch or sit"!
No screaming just cool calm and collective. It's the start of a whole new relationship. <img src="/ubbthreads/images/graemlins/wink.gif" alt="" />
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