Obedience is at the top of the to-do list. Work on obedience away from the protection work.
David made a great point. The only time the dog engages or aggresses is when you allow it to happen. They don't get to make the determination themselves. . .well. . .not really. . .WE give them a set of rules to operate with in protection situations and they MUST follow them. If they don't, the world comes crashing down on them.
I think a very common mistake that is made when doing personal protection work, especially with dogs that are on the edge to begin with, is that along with the aggressive part of "civil agitation" trainers neglect to work on exposing the dog to non-aggressive people in the training context.
*Really heavy defensive work is also going to give you a shyteload of problems as well, but that is a whole other thread.*
In other words, the dog needs to be exposed to both aggressive and non-aggressive people in the same training exercises. It also MUST be the actions of the person that dictate the dog's response, not the fact that there is just a person there.
That happens two ways.
First, the dog is only allowed to ALERT on command OR when there is obviously aggressive or suspicious behavior from the decoy. That means that the dog can NOT light up on anybody that just happens to be walking by. . .or walking up to the handler. . .or running by. . .or whatever. This takes a lot of work. In your civil aggitation you must have a decoy that can really play it up and do things that a real bad guy would do. We always talk about dog's having a natural sense of someone that is strange or someone that is a threat. This natural suspician needs to be developed in a way that teaches a set of cues that should evoke an alert from the dog without a command.
On the flip-side, I have found that you have to have AT LEAST three times the number of normal interactions with good people in the same context to counter-balance your bad guy work. You have to expose the dog to bad people and good people. They don't always have to be at the same exact time in the begining, but they should be at the same places and under the same conditions. During these interactions the good decoys must also play it up, they have to be very non-aggressive and nice. No aggression on your dog's part can be allowed here. Eyeballing the people, a little low grumbling, or very obvious suspician isn't a major concern. Depending on the dog, these things will usually diminish over time with the training. Lunging, barking, snarling, tooth showing. . .all of that crap should be corrected. You need to be able to read your dog, if it looks like there is a bite on the way. . .nip it in the bud. There have not been any cues to allow a bite yet.
Don't worry about training for the bad guy that is really nice up front, but then clubs you over the head. . .not yet.
Second, the dog is only allowed to engage (in any way whatsoever) when there are specific cues that you determine in your training.
The basic cues are usually a physical attack on the dog or handler, throwing something at the handler or dog, or the bite command. Any signs of engaging that the dog shows WITHOUT one of these cues must be corrected. In your training this progression of work is easy. If any of these things happen during your interactions with bad guys you allow the dog to bite, and/or give the bite command. Depending on the dog, he'll either just do it or will start to just do it after more repititions. If the dog pulls the trigger without one of these cues (or triggers, he he he <img src="/ubbthreads/images/graemlins/laugh.gif" alt="" /> ) you snap his damn neck with the prong. (or whatever works for you and Fido)
If in your training scenarios, and of course during trials, the dog has only encountered bad guys . . .every person the dog sees in that context will be a bad guy and you will get behavior like that which you have described.
One could write a whole book on this, obviously I'm not the one to do it, but maybe that will give you something to compare your training to. This is what I do with my PPDs. Really actual bite work is only a very very small % of the work I do in "protection".
If you already do work like this, I'd re-examine the temperament of your dog and/or the protection training he has received.
Anyway, maybe Richard Cannon will comment. Good luck!