I need help interpreting a dream (Nightmare-Induced WILD)

I will post my DJ entry in a spoiler:

Spoiler for 3/22/14:

1:31 AM
Dream number two didn’t exactly happen, but I’m writing down the experience anyways. In summary, I’m pretty much scared when I shouldn’t be lol. I put on some LD Audio before I went to bed (Binaural Beats & Beach Ambience). Then, I put my iPod away and tried to WILD. It worked.
I forgot I was WILD-ing for a bit and started to dream “normally”. I was in the back of my Chemistry classroom, and my teacher was reading off dorms for a class trip (this makes sense; I’m going on a field trip later in the year but with a different class). Then I heard a creepy woman’s voice list the types of rooms. Two of them were “Panic Room” and “Lucid Room”. There were about five others but I don’t remember the rest. Panic room was first on the list, so she read the description: “Panic Room. This room will make you want to skin yourself alive.” I then got deep chills from fear/creepiness/whatever. Those chills turned into the intense shaking that someone gets from sleep paralysis (and I realized that). I tried to imagine myself falling into my dream from the sky, since the shaking gave off a “sound” like rushing air. I then saw a creepy skeleton/lady face (but faint, similar to the ghost images you see in front of your eyelids). I then decided not to enter the dream, but instead inhale quickly a couple times and wake up.
This did freak me out quite a bit, but I don’t think it is that bad. I did get a few things out of this while having the comfort that dreams are just dreams and I’m always safe, no matter how vivid a LD is.
1) I can induce an LD without the aid of audio.
2) I can enter sleep paralysis.
3) I’m able to WILD without the wake-back-to-bed method.
I don’t think my “nightmare” was a negative thing, but rather a way for my body to induce sleep paralysis. The fact that a “lucid” room was mentioned set off a signal for me, and the “panic” was only there to transition into sleep paralysis in a way that made sense to my half-asleep body. The face was only an image my mind reflected from being afraid. It’s rather interesting, really!

Is the way I interpreted it correct? I am a bit nervous that I will encounter the creepy woman again tonight. Should I fight her? Try to talk to her? Or ignore it and make a new dream scene? This was my second LD (sorta) so I'm a bit lost on what to do.

If you believe what Robert Waggoner says in his "Lucid dreaming, Gateway to the inner self", you could try and project love and understanding to your enemy. Waggoner says, that "bad and scary" stuff we encounter, could be that part of us, that we reject, because we don't like it. Like something we don't like about ourselves. Wheather we like it or not, it is part of us, and first step in making peace with it is acknowledging that we have it. Then we can make peace with it and accept it, and there will no longer be scary conflict.

He suggests, that you don't fight or run away, but show and express love, understanding and acceptance. He says, that often this scary thing will turn into something cute and not threatening, and it can even merge back with the dreamer.

Of course, you could always chose to fight. But that could just prolong the struggle. At the end, it's up to you. Good luck and happy dreams:alien:

That was a really beautiful statement, I'll have to read his book now!

If/when I encounter the entity again I will go through with the dream and try to "make peace" like you said. Thanks so much for your help and ridding me of my fear! <3

Just knowing that I can change what's happening in a lucid dream, has also helped me in a few non-lucids too.

In a lucid:
A guy I was talking to, suddenly his face started to morph into something sinister. So I quickly said "You are a good guy, I love you", or something similar. He then stopped morphing, changed back to his self and we flew off to the saunset, hand in hand.

In a non-lucid:
There was a scary animal out of my sight, underneath some furniture. It was coming closer to me, so my subconscious made me say: "Look how cute it is". And it started morphing right before my eyes as soon as I could see it into this cute little lizard.