Konnart, Hi, I have a few thoughts about this question.
1- well, I have had the experience in various ways; waking up in bed, opening my eyes, recognizing the realness of being awake, than closing my eyes, and realizing that the dream I had before waking up was still in progress. Or waking up, sitting in bed, in the dark, and watching the dream continue for a few moments in the middle of my room. I remember once tuning around to wake up my girlfriend, and than smiling to my self, “how could she possibly see it, its in my head”.
2- The way I see it, is that the mind has this ability to create images, sounds, feelings or sensations and even smell when we are dreaming. You might have noticed that in dreams, it is more difficult to feel things with your hands than it is to see or hear things, smell is even more difficult.
3- So there is the mind creating this dream environment, and for some reason, when you wake up, it continues to project the dream, and you have the overlapping perception of reality and the dream that is still in progress. Now I think I can safely say that I understand the stress of experiencing something this unusual, because it is unusual, but that does not make it a problem. The problem might come in the form of people not understanding what your exploring and experiencing, the problem might also be that you have to keep up with some social “obligations” like school, work, or what ever. To see the actual size of the problem you can try to imagine if You could get away and just go somewhere you like and stay there for as long as you like, so as to take the time to work through this experience your having. I mean, come on, if every one around you said “cool, how do you do it, can you teach us, how long does it last…” You would most probably feel only a fraction of the stress you feel. Perspective.
4- “it got so scary that ive been trying to stop LDing,at least till i understand what’s goin on,its been two months now,i get so scared now wen i realize im dreaming that i wake up as soon as i do”
5- As a basic rule, I would say, drop the fear as if it was a stone in your hand. If You stop LDing, how will you figure out what your dealing with? You can’t learn to ride a motorbike with out starting the engine and riding it, you can read up on some theory but in the end, you have to get on it and ride it. It’s like rock climbing, in a way, and I have seen people; fear and than panic on a rock face. They lose there ability to function, to deal with what is in there face, the rock, climbing, and you have to hang there, talk them through the images in there mind, bring them back to the rock face, so that they can do what they need to do to move on/up. Your exploring like many people in this place, new territories in your own mind, see it as a challenge rather than defining it as a problem… I would encourage you to move on, deal with the fears, work through them, and learn more about the ability of the mind to project dream like images while in an awaken state.
6- Having said that, I would have to add that if you need to gather up more theory about what your experiencing before pushing on, than do so. And you might share with others here what you find out about the theory and the practice of this subject. I think it’s an excellent subject to be work here. When things get like that for me, I go partly scientist, I start writing down all my observation of who when where how why… and it put a bit of a distance between my self and the stress/fear that might have come up.
7- So, good luck with it, have fun, and I will try to find some theory on the subject, and post it here if I find some.
8- Note; insane, just look outside, look at most people and what they value, and if you live in a big city, the insanity is all the more blatant, so a little hallucination is a far cry from being even ankle high to insanity. Don’t worry about insanity.
yes, one last thing, you might find some interesting similaries with Dr. Timothy Leary, PhD (1920-1996) Psychologist, philosopher, explorer, teacher, optimist, author and revolutionary avatar of the mind… it’s been a long time since i read one of his books, but I do remember him having much to say about hallucinations. I’ll try to find more practical stuff in the next few weeks.
like the dwarph said to him self while running on to the land of mordor,“BREATH, JUST BREATH”.
You were lucky that were only harmless kids. 
I’ve read somewhere at this forum somebody had enough time to draw in real life a picture he continued to see after waking up. 
)