I really got a thing for this guy, and its been a little over 3yrs. He has met my family & everything, and I don't bring just anybody around my family. My family is very hard on everyone that I bring around them, But he seems to just bend in the family just fine. That's absolutely perfect for me. He went to both of my proms... J.r & S.r & we looked so good together. He talks to my mother on the phone a lot. She has told me that he liked me plenty of tmes before & I overheard him telling her that he likes me but he hasn't yet toldme. My mother has seen us in her dreams as a married couple, but I don't know if that is a sign or what. He lives an hour away but yet he still comes out to family functions & everything. He told my mother that he was looking for Mrs.Right & truth be told I'm looking for Mr.Right.
I am shy!!
He is shy.
Question #1: does this guy like me?
#2: do you think I'm crazy?
#3: should I approach him? If so, how should I approach him?
#4: are the dreams signs?

I would think some honest communications would be in order, but its telling also he hasn't approached you. If he hasn't gotten to the point of being comfortable with expressing himself to you, that's a big red flag, especially after 3 years in the friendzone. What he tells your mom, he should be telling you, in my opinion.

Are you both, that young, or that shy, or both?

Like I said above: The only sign I can see from this is that he hasn't approached you to further your relationship...
Now, Is that a sign that he's not interested? I can't say for sure but I would lean in that direction.

You said: "He's shy" but How shy can you be to... Not approach someone you like and that you've known for 3 years?

Another important thing I've taken away from what you've said is that: He's looking for Mrs. Right.
I would assume that IF he thought you were Mrs. Right... he would jump at the opportunity to make you "his"...

Should you approach him? I don't see a reason not to, it will definitely take all of the guess work out of this.
Be honest but don't be too "We belong together"-like... Does that make sense?

Just tell him that you like him, why you like him and would like to go on a non-friend date, if he's interested.

This guy could be very very very shy I can relate. I would say something to him and see how he reacts. Could be he is just very cautious and doesn't want to get hurt.