G.T.
This sounds exactly like my son at age 2. He was so shy and reserved around everyone but close family. The same thing happened..... people ignored my son and would pay attention to my friends kids because they was not shy. This made me sad too as I love my son and don't want him to feel left out.
He started going to pre-school 9 months ago just in the afternoons and I noticed he changed so much! Now he is 3 years old and although he is still shy, he participates more with other kids and people. Sometimes he still totally ignores people but usually he warms up very quickly if he senses the environment is good and the people are friendly. He plays with kids so well now!
I love the way he is. I am glad he is not loud and attention seeking. He is so calm, loyal and sweet. I am so thankful, especially when I see other kids being a handful and screaming for attention... :o)