Dani - when I used to get really nervous & scared it was because the thing was so important to me, and I was terrified that I was going to find that I just couldn't do it. It was never the fear of what people would think of me, so much as whether I could achieve what I desperately wanted to achieve - without voice-wobbling, chord-mangling or word-forgetting.
The fear was high because the stakes were so high. Now the fear is largely gone, because experience tells me that I can do it most of the time, and the odd off-day is no real worry.
Having said all that - I shall now contradict myself... sometimes one particular person being there can completely throw me so that everything comes out wrong. If there's someone there that I know for a fact dislikes me or my singing then I'll have great difficulty doing anything worthwhile. Anyone else suffer from that kryptonite effect?? - I managed to cure it in one instance by writing a song about the situation and singing it in front of Mrs Kryptonite. But it can be a swine.

Kris