Those are all quite powerful experiences you describe, fire blossom. Interesting choice of username, too. Fitting.
You use the word "psychotic." I think many people who are psychotic are people with psychic gifts who were never able to find proper training, who were never able to control or contain the energies moving through them. Like in the last X-Men movie, where Patrick Stewart says, "Control the power, don't let it control you." The psychic ability can be real (in your case, I would say it almost certainly is), but it still can drive you mad, particularly when it is as powerful as what you describe.
You also ask about dreaming. Yes, dreaming is what you are doing, if by dreaming you mean entering a state of consciousness in which you are tuned into these other realities and the beings that live there. You might do it while asleep, or at the edge of sleep (what people call hypnagogia), or in a trance, or even while wide awake. The place you go in the dream is a real place that exists in the universe, and the beings you encounter are real, and yes, you are dreaming when you do it.
The experience of being paralyzed and having the "paws" of this creature on your chest is one which people have been having for hundreds of years. People have even drawn pictures of it, like this one:
http://www.uni-bielefeld.de/lili/per..._nightmare.jpg
When someone shifts between states of consciousness with no control, in a way that disrupts her life, we call that crazy, psychotic.
When someone shifts between states of consciousness at will, doing intentional spiritual work to help herself and others, we call that person a mage or shaman (or many other names, like medicine worker--pick your cultural tradition).
I'm going to say to you what several people have said to me in my life: Had you been born into another culture, a tribal culture, the shamans or witch doctors of that culture probably would have noticed you at an early age. They would have taken you away, not to cure you, but to train you. In our culture, we have to grow up wondering, often getting no information or mis-information (being told we are crazy or possessed by the devil). Take heart. It's much better now than it was 20 or 40 years ago (I'm 42--take my word for it). You have the Internet, lots of metaphysical bookstores in every big city, various kinds of spiritual teachers, psychics, and people in the neo-shamanism movement who can guide you (just watch out for hucksters and ego-trippers).
Here are some things to work on:
1. Personal integrity. Being true to yourself, knowing yourself and not being afraid to just be yourself when you are alone or with others. This is huge. Honesty. As they used to say in the 70's, being "all together," and "working on your hang ups." We all suffer some psychological bruises (or even psychological compound fractures) as we grow up. If those are not healed constructively, they will cause trouble for you when you enter the spiritual realm. You've already seen how your fears and doubts and self-doubt can play tricks on you with this stuff. Wait until you start to get a little good at it. Then your pride can play tricks on you, which can be even more dangerous and disruptive (speaking from experience--I've screwed up bigtime acting out of pride and arrogance).
2. Learn to control your state of consciousness. Learn to ground yourself before you go flying off in dream. Learn to stand in the center of your circle of power, so no spirit can throw you out (it's kind of like sumo wrestling, sometimes). There are all kinds of meditation techniques from all over the world for this one. If you like, I'd be happy to share some I know that I like.
3. Find one or more good human teachers in the waking world. Make sure they are honest people; look for an open mind and a good sense of humor. Watch out for people who want to control you or take your money.
4. Find one or more good guides/teachers in the spirit world. Again, lots of techniques to do this. I'm a fan of being given one as a gift. If you were training with me, I would go on a shamanic journey to bring you back a power animal.
5. Get outside. Mother Nature has all the answers. The more time you spend with Her, the better.
Blessings, and by all means stay in touch if there is anything more we can do to help.