I got a pomeranian mix at the pound about 2 years ago.  She is larger than a typical pomeranian.  She weighs about 15 pounds.  Anyway, she is very good with  my children and I.  However, she is not good with other people.  She bit my father and a neighbor.  She appears to bite out of fear.  There is no growling or barking and no notice.  She bites and then runs. The biting occured after we had her for a few months. I have not given her the opportunity to bite again.

She used to yelp anytime I'd put her collar and leash on too. She is very fearful of unfamiliar places like petsmart and such.

 Anyway, we recently got a puppy who is 7 weeks old now. We have had her for a week.  I have not allowed the puppy and dog on loose together.  I am very afraid of doing this.  My dog has not shown aggression towards the puppy.  I have let them smell eachother and I'll hold the puppy next to my dog etc. 

My older dog, Cookie, does not play either. She will be 5 years in September.  She has never been playful since we had her anyway,  I leave the puppy in a crate and Cookie is free in the house when I leave. I ran some errands today and when I came home Cookie was very happy and greeted me as usual.  She was just much more hyper than usual.  She ran through the house and ran to me and jumped on me and then ran through the house again.  I went into another room and Cookie stood in front of the puppy in her crate and barked.  Cookie NEVER barks. She doesn't even get up if someone rings the door bell let alone bark.  While she was barking in front of the puppy in her crate her tale was wagging.

Later I took both of them on a walk together.  I had Cookie on one side and the puppy on the other side.  THe puppy was jumping and dancing all over since we are learning how to walk on a leash. Cookie walked on and didn't pay attention to what the puppy was doing.  When we stopped Cookie did look at the puppy but did not appear agressive.

In the house I put the puppy on the floor with me and a toy.  Cookie would walk by us and was really close to the puppy but didn't touch her.  Then Cooke came in and stepped over the puppy to get my attention.  I gave her attention while the puppy played with her toy.  There were a few times when the puppy started to bite at Cookie to play and Cookie backed up a little but didn't do anything.

 Cookie has been wanting more of my attention and she has been a little more hyper. 

I also gave Cookie and the puppy a treat at the same time together.  I first told Cookie to sit and gave her a treat. I then told puppy to sit and gave her a treat. Also, I have sepearate food bowls for them but the same water bowl.  The puppy keeps eating out of Cookie's bowl and Cookie doesn't act like she cares. And Cookie eats out of the puppies bowl.  They both have the same food. I am really nervous about allowing the puppy to bite Cookie in play.  I am also nervous about just having the two of them on the floor without me having control like with a leash or one of them in my lap. Cookie has never been possessive over her food.

Any suggestions?  Also, is Cookie's behavior normal? Is her behavior a good thing or bad thing?