Dear software professional: if you have been rejected because of a coding interview, don't feel bad or discouraged. It has little to do with how smart you are. Unfortunately, this style of interviews is likely ineffective and leads to hiring people who look alike and have similar skills. Solving a problem with someone looking over your shoulder and forcing you to talk to explain what you are thinking is a skill that…
I'm often in the position to have to explain my reasoning while developing software. Code reviews and pair-programming come to mind. It's about being able to communicate complexity and being more rigorous about the software development process.
That said, this style of coding interview brings up a level of stress that I'm rarely under at work. It's an unfortunate condition of interviewing, but I don't think it's completely avoidable no matter how comfortable you make the interviewee.