Why am I having REALLY REALLY scary dreams?

I really doubt your schitzophrenic. Dreams arent an exact science however some people belive that dreams are a way of your brain taking perceptions of somthing from your sub-concious and giveing it a life form. Materializing these feelings gives you a kind of visual idea of how your sub-consious percives these feelings. Some people also say that dreams are what you see when your brain and sub-consious work together to solve problems. Examine your life and traumatic situations you have been through and see if you can relate it to your dreams. Id try drawing some of these visualizations to see if you can make sense of them. If all else fails consider seeking a psychologist to help you out. As far as the hallucination, i bet it was somthing left over from being awoken from REM (Dream state) sleep.