Abused Dog Afraid of Being Picked Up?

We rescued our Chiweenie (Chihuahua Dachshund mix) from an out of state pound where she was picked up as a stray. The pound had her age at 11 months. Once she arrived with us, we quickly found that she had been abused. She's gotten over most of her fears except her unbelievable fear of being picked up.

Once she's being held, she's fine. It's the initial picking up that she's deathly afraid of. She runs (like she's running for her life) when we try. We do have one method that works. She has a bed that's kind of like a pita pocket. When she goes in there, we pick up the whole bed quickly before she can jump out.

We think she was abused because she wasn't housebroken. We think they picked her up and threw her outside. Why we think this:
1. She used to be extremely afraid of being outside.
2. She used to be extremely afraid and hide inside her bed after she used her pee pad.
3. We've actually seen her licking up her own pee from the floor. :(

She's gotten over these issues, but now we really need to help her fear of being picked up. Does anyone have suggestions?

By misee930