Welcome to Dreamviews!

As you say, you hallucinate something scary because you expect it. You have to believe nothing can hurt you. Fill your mind with pleasant thoughts. Keep thnking and visualizing some cool scene from a previous dream, or some fantasy you have. You can get rid of the scary stuff just by simply saying to yourself "wow, what a cute bunny". Or project love towards it. Say that you love it and don't want to hurt it. Then watch it transform into something cute.

You can exit into a LD as you mention - by standing up or rolling out. But you can also wait for the dream to start and wish and see yourself inside it. http://www.dreamviews.com/wake-initi...ntry-wild.html

But you shouldn't really pay too much attention to any of your body sensations. SP has nothing to do with WILDing. It starts only after you start to dream and by then you are too far gone to notice anything. By then, you should not feel your body anyway, so if you in SP or not is irrelevant.

Here are two tutorials I recommend.

WILD (sageous)
WILD (dreamviews recommended WILD)