Silaria
Forums Sage
I'm rather shy around people I don't know, also. Heck, I've only started to loosen up and talk people in my agility club within the past few months. There is one sure fire conversation you can have with folks until you get comfortable... talk about the dogs! People who love their dogs love to talk about them so ask folks about them. Don't worry about not being as experienced just admit you are just starting out but that's why you are there - to learn and do what's best for Smudge. 
The other thing to remember is you are going to be a puppy class so the "big dogs" won't be as big as their full grown selves. This may actually help you be a little less nervous around the big dogs. I fully understand why they make you nervous and I don't blame you but part of YOUR training will be learning to control that so it doesn't go down the leash to Smudge and make HIM nervous around them; which can potentially lead to bad situations.
Take your instructor aside and mention your fear of the larger dogs and maybe he/she can help you as well as Smudge. She'll also understand why you may put yourself on a different side of the room from the larger pups.

The other thing to remember is you are going to be a puppy class so the "big dogs" won't be as big as their full grown selves. This may actually help you be a little less nervous around the big dogs. I fully understand why they make you nervous and I don't blame you but part of YOUR training will be learning to control that so it doesn't go down the leash to Smudge and make HIM nervous around them; which can potentially lead to bad situations.
Take your instructor aside and mention your fear of the larger dogs and maybe he/she can help you as well as Smudge. She'll also understand why you may put yourself on a different side of the room from the larger pups.
Time to borrow dad's GPS system!

So Smudge will not be going to classes. I am completely bummed.