How old is Mega?
Try this when he get's excited at the sight of another dog. Do a 180, and walk away from the distraction, dog or child. Then do another 180 and walk Mega in you original direction. At the first sign of tugging, turn and walk away again.
He should quickly learn that tugging has a negative consequence.
You can also "be a tree". When he tugs, stand absolutely motionless, like a tree until he calms down, and there is slack in the line. Then treat and reward him as soon as you have slack. Then proceed again. You may only be able to take a step or two before he pulls again. As soon as he does, be a tree again, and treat him as soon as there is slack in the line.
The real key, is to keep him focused on you, and treating him regularly when he is walking properly is not only positive reinforcement, but keeps his attention on you.
Enroll in some group classes where he will learn to "work" around distractions. Don't be discouraged if he seems unruly. The classes are for the both of you. You will be learning techniques, and while he may not appear to be making much progress, he is nonetheless learning.
There may even be some show classes in your area. This did more good for Indy than anything else. Even if you aren't going to show your dog, you may be able to attend the classes. Check with the instructor. Tell her what you are trying to do. The rates for show classes are actually cheaper than group obedience classes.
The beauty of show classes is that most of the dogs are used to being around other dogs in close proximity without even showing interest in them. They really focus on their handler. You may decide it's not for you, but I recommend it, and it's worth a looksee.
You can practice "attention" exercises away from distractions. You can do it sitting in your living room or outside. Have Mega on his lead, and call his name. The instant he responds by looking at you say YESSSS and treat him. You can substitute a clicker for calling his name. Some swear by clicker training. Again praise and treat when he responds. You can repeat this 10, 20, or as many times as you would like. Make sure the treats are small if you do it several times.
When you take Mega for a walk, click or call his name every few seconds, and reward him with a treat the moment he responds. When he gets the idea, you can periodically reward with praise and affection in place of a treat.
Gradually eliminate the treats, and use praise and affection. Scruff his ears, or give his head a vigorous rub while telling him what a good boy he is.
It will take time and patience, but one day it will seem as though someone flicked a switch, and the light bulb went on in his head.
That will be almost as good as seeing your kids graduate. Stick with it, you'll be glad you did.
Oh yes, collars. Get a sturdy, wide flat collar, that won't stretch. A buckle type is the strongest, but if you opt for the clip type, spend the extra for a quality collar. The plastic clips are not dependable on the cheap collars.
Tom