I've only had a few epic dreams over my life time that were similar to what you describe -- the recurring characters, a plot that picks up where it left off from the night before. However my experience differs because I love these dreams. I'm not frightened by them, even when they leave me exhausted in the morning.

If these dreams are truely getting in the way of your ability to function you may want to go see a doctor to find out if there is any underlying physical cause.