Burn some sage in your room and place some lavender under your pillow to prevent the nightmares. If you're allergic, try dill, or chammomile flowers, or chammomile.
As for the things you see, you either have schizophrenia, or you're seeing these things because your third eye chakra is open.
If you want to close it slightly, picture an eye in the area between your eyebrows closing, or develop your own mmethod of the closing visualization. If you wish to open it again, just imagine it opening. It is a bit of a gift though, and a talent, consider your decisions carefully. But, I would still suggest the sage and pillow activities, to help you sleep more peacefully.