HELP! My pitbull acted out of the ordinary tonight...

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I took my dog for a walk, just like every other evening. We ALWAYS walk the same route and ALWAYS pass other people walking with and with out their dogs. Well, tonight had a little twist to it! We were passing a guy with his dog and they started to bark at eachother. I continued to walk and calmly told her 'come on'. The guy stopped on the other side of the street while his dog barked non-stop. Princess (my dog) started to pull away and wanted to go back toward them. She wasn't acting mean, more like she wanted to play. Her tail was wagging and she wasn't barking anymore. After a small tugging battle and her not listening, which is unusual, she wiggled her way loose. I have a harness for her and some how she got out of it! I still can't figure that out! She ran to the guy and started to dominate his dog. Still not being agressive until the other dog turned and snipped at her. That set her off and she started fighting with the dog. There was no blood and we pulled them apart as fast as we could. But she wouldn't listen to me and sounded so mean. I have NEVER heard her growl and bark so bad!! It was embarrassing and scary for me. I told my husband I don't ever want to walk alone with her again! Not only that but we live in a small community and no she will have the 'bad pitbull' label that I didn't want her to have.:( I guess my reason for this post is that she has NEVER acted like this...what would have caused her to misbehave so badly? What could I do so it don't happen again? Shes so precious and I am so disappointed in her behavior...in every area she is a good listener. Suggestions please!