I don’t really get it…how do you properly confront them?and what’s the gift thingie? How do you get it?? haha im really, really new to this XP
I wanted to ask the same thing, I have really creepy dreams sometimes (often in haunted, abandoned house). 
I don’t know where to start, my DCs often act harmful If I want to defend myself and they look scary. I almost get heart attack when I hear mysterious growls or other sounds in the dream environment.
There are multiple ways, from simply turning around to your enemie, screaming at him, demanding help to fighting your fears or enemies. There are so many ways you can choose from that you can just experiment and see what works best for you. I personally prefer a more peaceful approach. It’s important to think positive about your dreams, it’s not like they want to harm you.
About the gift: The idea is to defeat your enemie in whatever way and then demand a gift from them which should be useful/enjoyable, maybe even IWL. The gift doesn’t need to be a physical one. This way the DC is turned completely into a peaceful character.
For everyone who has problems with dream fears, nightmares or just dreams with a general creepy feeling and atmosphere, I suggest you to buy the book “Creative Dreaming” by Patricia Garfield. I’ve read it myself, out of pure curiousity, and it’s a very good read. After simply reading it, my dreams became much more pleasurable and friendly.
how do you demand the gift? just ‘hey, gimme a gift’ (hahaha…) ? and how exactly would you fight the nightmare monster things off…
If you have a god power and two fake gods are threatening you, what would you do?
Make them learn.
I wish there was a rulebook for these kinds of things 
It would make life so much easier.
Personally, I think that “Hey, gimme a gift.” would totally work, as long as you really meant it. To fight the monster off, it depends. For me, I’d go all martial arts style. Its totally up to you and how you feel you can face your fears.
You’d be amazed at how something as simple as turning around and smiling to the monster can make a profound change. I randomly remember an old commercial on Cartoon Network with Tom and Jerry (or was it the Coyote and Roadrunner?). Anyway, Tom (or whoever it was) finally catches Jerry and says “hey man, you forgot your wallet”. If you are able to drop your fear of the monster (which can be a lot easier than it seems) the whol context can change just like that. Fighting may work too, but the mosnter may just be unbeatable 
I find love is much more powerful xD
@Leijona: I love that book! The first one I read about dreaming… I should read it again.