Learning to LD might really help you. The reason behind this is that in an LD you are able to control your dream. You can also test yourself to see if you are dreaming. (Pinching yourself to feel pain, or holding your breath without any adverse reaction are good indicators that help me in an LD.
If you are aware that you have a problem, then you are more than likely not Psychotic, but you may wish to seek professional help all the same. Dreaming can help you overcome the mudane problems of life, but you have to have a real life too. If you don't have a real life, then your dreams will become just as stale as your real boring life. However, I do think that if you are a soldier in Iraq then you will have professional help available to you and I believe that you should seek that help.
Thank you for your service