Towels, blankets, even kleenex scare Jazz. How can I help him to not be so scared? I figure someone toweled him to clip his wings or something and it was a bad experience for him.

Play games like peekaboo with a towel. Make the towel fun and not scary. Or maybe a hand towel since he is so little! You can show him how to tear up a Kleenex too. That is one of Roger's (my blue crown conure) favorite foot toys.

Set the towel down in your lap, spread favorite treats such as cashew pieces, and small seeds, and let him run around on your lap forraging for it. Attention and treats?! Hey, these towel things ain't so bad...

Shredding kleenex is a good suggestion. Also wrap treats inside those, so as he shreds them, not only is it a toy, it's a toy with a surprise center.

They are scared of everything til they get used to them. Then they aren't scared anymore. Don't worry too much about this one. Just gradually work with the bird and build up an immunity to the feared object.

The only way to overcome a fear is to confront it.

Emma my amazon got pretty upset about towels after a visit to the vet. I put her on the floor and I laid down and draped a towel over my head. I played peekaboo with her using the towel. She LOVES this game so it really didn't take her long to come and join me under the towel and run back and out yelling "peeekabooo" and "where are you?". I started this game with her when she was younger, so not sure if it'll be as easy when you've never played this game but it really does rid the fear of the towel. I've also done it when I laid on the floor with the towel over my head and took some of her favorite treats and munched on them under the towel saying how good they were etc. etc. (must of looked like a complete idiot!). I made a little tunnel for her and she'll usually come in to see what I have. Hope this helps a bit!