Hello there, I’m not sure whether this topic should be moved as your questions sound like they rather belong into Quest for Lucidity, but I’ll answer anyway.
Here’s the ld4all beginners guide to LDing, and your hallucinations usually happen in the state called sleep paralysis (which is usually abbreviated as SP - here’s also a list of abbreviations, as this can get rather confusing). Many people have overcome those fears, and as far as I know it doesn’t even necessarily have to be frightening.
Also, if you’re new to the forums, in order to get an idea of what every subforum is about, I recommend taking the guided tour.