My birdie is scared of everything!!

Really he just needs time to adjust to not only you,but his surroundings and your normal routine around his living area. My bird is 19 months,and for the most part,was settled in 2 months after we got him. It's a good thing that he welcomes your hand,so a positive start there. His world is getting bigger every day. With anything,toys ,new cages ect.,there's an adjustment period. Did he come clipped? My guy,buddy did. While there's a lot of positives about this,his demenor will be one of caution,and will react to any noise or sudden movement.
When approaching him..do so slowly. Sitting in a chair by his cage while talking softly.to him will help h settle in. I'm sure he has his eyes on his cage. His food and water that's in his cage should be the only source for a while..this way,he'll have to visit the inside a few times a day. Make sure he has at least a couple perches,with 1 higher up. A perch on the outside of the door is a good thing too. If he's reluctant to go inside after a couple more days,try partially covering the cage..they always like to feel safe and a cover can be comforting to him.
Don't feel bad though..buddy still screams at the vaccume,so I mostly use a broom..and he's wary of that too ! I re assure him in a soft voice saying " it's ok buddy" no biggie" and he now repeats that while his mannerism is paranoid ! Some things never change !
Good luck with your baby pappy ! It's a special time for both of you ! Let us know how it's going.

Dinucci gave you some good suggestions. Pappy probably needs to be shown how to play with his toys. It can help if you play with them while Pappy looks on, and show him how much fun they are. Even then, Pappy may not be interested. My QP Ralph prefers things that aren't parrot toys. He likes to build with wooden dowels-- a little of the QP nest building instinct, but Ralph doesn't want to build an actual nest. He just enjoys arranging and rearranging the sticks. I give him hardwood dowels about 1/8 inch thick, cut to lengths from 6 inches to 9 inches. Ralph also likes untying strings I tie to his cage bars. His favorite ones are vegetable tanned leather laces and pure cotton string, both of which are bird-safe. He used to play with small plastic keys made for human babies, but seems to have lost interest in those. He also likes to chew up popsicle sticks, which can be found in some grocery stores, kitchen gadget stores and craft stores. Experiment a little and you may find some things Pappy will like to play with.

Thanks a bunch!! I'll try variety of things for Pappy and see what it likes. Thanks again for the great advice!