Hi Loohoo and thanks for your post,
It sounds like you are doing all the right things in terms of socializing your pup. Keep up the socialization and praising him for interacting and being calm and brave. He will learn how to interact with the others from how you and the dogs react to his behaviors and it is not that unusual for young dogs to have a bit of trouble understanding the complex social interactions at first.
Finding other dogs to socialize with can be really hard in smaller towns. Maybe you could try putting a note up at your local supermarket, vet clinic or pet shop etc organizing a walk at the dog park at a particular time and then go every week and see who turns up. One of these was organized in my area and we now have at least 30 dogs attending most weeks which provides excellent socialization for all of the dogs and heaps of exercise.
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