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Anyway, so I met this PsyD and I don't even know if it will work out since the ONLY times she has available are training slots where students will have to sit in and observe. I mean YIPES! I'm terrified enough as it is, then to have a student observe?!?

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That sounds incredibly stressful and not conducive to developing a sound therapeutic relationship. Do you have to agree? When I go for doctor's appointments at a facility that has a training program for medical students, they always ask the patient if they will allow a medical student to be present, and the patient has the right to decline. Since you have only seen this therapist once, you don't have too much invested in therapy with her, so would it be better to just go to someone else who won't have a trainee sitting in? All you would have "wasted" is one session. Your life sounds very stressful right now. I hope you can find some ways to be good to yourself and relax. I agree, getting good sleep is so important. Hang in there!