I find that I have very little trouble in dealing with fear. In fact, I enjoy being afraid because it shows that I am alive and growing.
What works best for me is to tackle fear head on... but in baby steps.
For example, lets say you wanted to dive off a 10m diving platform but were too scared.
I'd first start by practicing my diving technique. Then I would dive off the smallest platform. Then I would move up to the next size platform and so on until I finally dived off the 10 platform.
And if I am still scared of the 10m platform... I'd go back again and make sure I really am prepared. Once I am sure of it, it's just a matter of taking the risk and going for the dive.
But I think it's also important to realize that many times people underestimate what they are really capable of. Once you have done your preparation, don't second-guess yourself. Just go for it.
Finally, the key to completely eliminating fear is by repeatedly facing it. With the diving board example again - you'll probably still be scared on your second, third, fourth and fifth dive... but the more often you do it... the easier and less scary it will become.