Is terrified of you translates the Hebrew noun phrase “the fear of you (has fallen upon us)” (see Revised Standard Version). The next clause, “and that all the inhabitants of the land melt before you” (see Revised Standard Version), is simply another way of saying “they are terrified.” New English Bible, like Good News Translation, combines the two. The two clauses may also be translated, “All of its people tremble before you; because of fear they are like lame people.”
Quoted with permission from Bratcher, Robert G. and Newman, Barclay M. A Handbook on Joshua. (UBS Helps for Translators). New York: UBS, 1983. For this and other handbooks for translators see here .