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By the way, have you ever read The Power of Now by Eckhart Tolle? I just started it, but many of the concepts you talked of are described in great and thorough detail in this book. Some of it may sound like mindless dribble at times, but I really enjoy his ideas and can say that they have definitely helped me on a personal and interpersonal level.
I've got that book. Read it through a couple of times and browsed through it a lot. One of my favourite lines Eckhart wrote is, "It is the quality of your consciousness at this moment that is the main determinant of what kind of future you will experience".
Anyway, in terms of overcoming social shyness, I do believe getting out of your head is the main thing one needs to do. The mind in itself isn't a bad thing, but when it bogs you down in indecisivness that's when it can start to become a problem. One of the ways to counter this, I think, is be active most of the time. Basically, one needs to focus his or her energies on something, otherwise those energies will become stale. So, one of the best ways to channel these energies is to KEEP ON TALKING. For example, when in a conversation, don't let moments of silence last any more than say ten seconds. Because once you do let the flow of a conversation go it's so much harder to get it back up again. Whereas if you keep it flowing steadily, even if it's not terribly interesting or exciting, there's still a flame there and it looks like you're making an effort.