I have Sleep paralysis, and i can confirm this is perfectly normal (FOR people with SP) it sounds like you have it pretty bad like me, now i have researched into it a great deal, the causes of it are mostly lack of sleep for my self, but it can also be caused by stress or having a great deal on your mind whilst sleeping. Now since your awake but dreaming you are in a kinda super lucid dream because YOU are awake, and YOU do have your eyes open seeing the world around you (unable to move) but yet you are dreaming so things become distorted, now they mostly become distorted by what you fear. i can explain, i woke into SP and saw a shadow flickering (TV was on) and i thought, oh shit SP again and wow that shadow looks freaky kinda like a dinosaur, then after that it morphed into one, was freaky but hey that's what happens if you think of it as a bad experience.

Just remember that your in no danger and that no matter how real things feel or seem, there not. also, if you think your moving, like sleep walking DW this is just you dreaming, SP is the opersit to sleep walking.

I hope this helped.