Join a dance program. Your issue seems to be lack of confidence around women in general, not specifically in a dating environment. Get comfortable with your body in an environment where a lot of women are. And don't try to date the women you dance with, at least not initially.
Dance is just an easy thing to join: you could also go to underground music venues, join a co-ed softball/volleyball/tae kwon do team, take arts classes at a community college or join a book club at your library.
Another vote for dancing! I used to dread dancing for many years. Then I found tango. Argentine Tango has been an amazing positive dimension to add to my life.
My confidence in social settings in general and particularly with women has been greatly improved. It's a great balance to programming and problem solving activities, too.
I second the dance idea -- I took up salsa dancing and similar styles years ago, for a couple years straight, and it made a huge difference. Your posture, your comfort around women, your confidence -- it'll do wonders.
Getting used to people touching is already sort of weird. It is odd because of how different it is even amongst Americans. Being born and raised in Seattle, guys never really hug (hah some days the handshake is even uncertain!), but I have recently made friends with groups from other areas of the countries and it is interesting seeing different standards of expected physical interaction.
But yeah, dance classes have been recommended to me. I'm doing improv right now, which is already helping a good deal, it is a different set of experiences.
Dance is just an easy thing to join: you could also go to underground music venues, join a co-ed softball/volleyball/tae kwon do team, take arts classes at a community college or join a book club at your library.