how to train a german shepherd not to be fearfull

Have you done any training with the dog?

Clearly the dog needs work on her socialization skills but first she needs to know that you are in charge. She needs to know and obey simple commands like sit and stay. My recommendation is once you can control your dog with no one around you slowly introduce other people to the situation and work with her until you can control her at all times.

My wife has Cesar Millan's rules posted on our fridge.

The full list is here.
Dos and Don'ts for Dog Discipline

When we trained our dog, the thing I found was classes weren't to train the dog they were to train the owner. Being consistent and clear with the dog at all times is the most important thing. You probably need to actively work with your dog for an hour or more a day and reinforce that training when not actually working with the dog. The other thing you have to be careful of is other persons in your house undermining the training by letting the dog get away with things.

That's a great post Parados.

100% right on the training being for the owner/handler more than for the dog.

When we started taking classes at PetSmart, the early classes were always owner only - the dogs didn't even come in for a week or two.

my dog will sit when i tell her to and she gives her paw and if i tell her to go get one of her toys or a specific toy she'll go get it it's just when i'm outside she lunges at people and barks at them when they get to close and she wants to fight dogs that are on a leash and if the dog is off a leash she'll run pratically dragging me behind her

Stop rewarding bad behavior. If the dog lunges at others on a walk, she goes home. You need to walk her where no one and nothing is around until her behavior is corrected otherwise you are only enforcing it. You have allowed the bad habit so it will take longer to correct unless you stop rewarding it immediately.

You now need to train her to sit while told outside on a walk and no one is around. You also need to train her to sit in familiar surroundings when others are around. Your goal is to teach her to sit no matter what she sees. You are in charge. Under no circumstances should she be allowed to do what you don't want her to do.

Obviously your dog is trainable.

What training are you doing with her to help her with her confidence?

well i started when there is a dog coming toward us when we walk i make her sit and stay until the dog goes by but i don't bring cookies or treats with me when she does that i pet her and tell her she's a good girl and when it comes to us walking by some one i bring her close to me and we get off the side walk and go by them but she still acts scared and trys to pull away so i some time am pulling on her with a prong collar on but i don't want to hurt my dog