Help with Behavior Problems...

Muscles- Glasses

Purred: Fri Aug 10, '12 11:50pm PST 
I adopted a husky about a week ago. She is 7 months old, and came from a family (that I assume) mistreated her. She was shaved, extremely dirty, covered in fleas and very withdrawn. They had a phone cord attached to her collar like a leash. It took her about two days to get used to our male husky puppy. She still snarls at him, and nips at him when he gets near something she really wants just to herself. She snapped at me earlier when I tried to remove her bone (I was getting the bone to move her to another room, so that she would not bite the puppy). She came VERY close to biting me and it startled me. I have two young children (ages 3 and 6 years old), and I am worried that she might bite one of my kids. My children know how to treat animals with respect, but they are still kids, and want to play with her.
Since we got her, I have been "babying" her, so that she will relax more.
She is very calm, and really doesn't play that much... She does play with the stuffed toys, chew on bones, and all that.
I really, really, really need advice on how to address her "aggression".
What are some good tips/trick to help her overcome these issues?
I really appreciate any help I can get.
If I can not get her to stop snapping and snarling, I might have to find her a new home.
I love her, but my children's safety might be in jeopardy.