Dealing with that type of aggression can be very difficuly. You have to be able to manage him very well, meaning when strangers, especially kids come over, he needs to be confined to a safe area for both him and your guests. Along with that you can begin to desentize and counter-condition him to the things that he gives this response. Read our article on
Dog Learning Theory for some examples. At this point I strongly recommend finding a Positive Reinforcement trainer in your area to help you work with him.