Stephen

Thanks Lee I missed that too, a 3 month old puppy is a different thing it is time to start socailizing. Getting him around as many people and things as possible. Set up walks in the park were you are approached by friends that he knows then build up to strangers and other animals.

This should be done gradually IMO and built upon, make it fun and treat and praise when he is quite or gives the responce you want which is to settle down.

Keep bringing your friends around and like the others said having them treat him and maybe play light tug with a sock/tugg or one of his toys tied to a string, nothing ruff and always let him win after a short session. I'd show them what you want to keep it light and playful, so no mistakes are made.

Some people like an aloof dog or one thats easy to alert. I think there are degrees at this stage that are exceptable and others that can be annoying.

I don't mind my dog barking at a guy that tries to touch him, when I tell him," no I rather he didn't". Now a dog should have the confidence to trust your judgement after I tell him "they are, Ok" usually he will let them touch him or pet him, though you can see he him sorta rolling his eyes when they get too mushy, he will actually shake like he's wet afterwards. <img src="/ubbthreads/images/graemlins/wink.gif" alt="" />

I think part of this will depend on your control of him, but socailize him as much as possible. Build a strong bond with him, like you are doing so that you can gradually releive this stress with your confidence.

Notice though Mats seems to be sharper and less socail then Mulan the female Rottie/Pit really she is this 1st to respond to a non threatening situation. Like a person/sellsmen walking into the yard wanting to ask a question or strange dog/animal. So accepting contact is only part of the drill. <img src="/ubbthreads/images/graemlins/wink.gif" alt="" />

Mat just looks at them (no barking), like "Man, whats up?" Though she's barking their eyes are on him, like a sheep being hearded. <img src="/ubbthreads/images/graemlins/wink.gif" alt="" />

Stephen,
Your pup's behavior sounds similar to my experience with my pup who is now eight months old. Early on, he showed what some might describe as a low defense threshold, and he would accept food from strangers when I worked on early socialization, but did not want strangers to immediately pet him on the head. He would back off some, but otherwise, was not showing a lot of behavior that I would consider a lack of nerve strength.
I took him to a well known trainer from Germany when he was about 6.5 months old, and the trainer commented on my pup's suspicion. To paraphrase, he stated, "The GSD is supposed to be good with its family and children, and be mistrustful of strangers. Somehow, over the last 20 or so years, things have gotten turned around so that the GSD that shows mistrust is considered to have a temperamnet problem."
I"d say if your pup is showing promising prey drive, and can handle things like different surfaces and sounds, you probably have something to work with. IT sounds like he comes from good bloodlines. Your pup is more likely to be loaded more toward defense, but if the prey is there, focus on working in prey, especially to build drive for obedience. With maturity the defense will be there. Also be aware that your pup might tend to be protective around your property, vehicle, etc. and be prepared to manage those situations as the pup matures.