Yeah I think you need to help your dog re-associate the lead with more pleasant things. Like somebody else has said, it does look like your dog has been mistrated with the lead. Actually it is, in my opinion, not a very serious problem: at least your dog isn't showing any aggression. Could you ask your vet for any advice? Or maybe search online for teaching abused dogs new behaviour? If your dog is fine and fits into your family otherwise, I wouldn't consider giving her up because of her fear of the lead. It is humans who have made her scared of the lead, it isn't her fault. Hopefully with kindness and understanding you will be able to help her learn that nowadays it isn't to be feared but that happy events occur when she is on it.