Demons in Dreams
For just a moment, let's say the demons are real. It doesn't matter if they are -- it just makes this easier for me to share. :) And yes, Winter did study hermetic magick for a time, so if this doesn't fit your particular structure of beliefs, just bare with me... :)
What you have to understand is that from a magickal aspect, nothing can harm you in your dreams unless you allow it -- and even then, you can
only be harmed by allowing it to manipulate your emotions (fear,
rejection, etc).
Think of the place where your dreams take place as if you were standing inside a big rubber ball. All around you, wherever you look, is a smooth, curved surface. Your subconscious projects images and scenes upon the surface of the ball, like a movie being shown on a 360 degree screen. There is nothing inside this ball that isn't you and because of that, you are in total control of everything that occurs within your dreams.
Now, should a *demon* appear, it can only come from one of two places. First of all, it can be a manifestation of emotion or fear you carry within. But if it is, it's a part of you. There are countless ways to deal with it. You can confront it and tell it that it has no power over you. You can forgive it for the pain it represents. You can attack it and conquer it in any way you can imagine. Or you can confront it with positive emotion, tell it that it's loved and you're sorry it was hurt. Any of these things are powerful tools that will "defeat" the
negativity.
The second place that it could conceivably come from is from outside of you. What you have to understand is that it takes a great amount of effort for the *demon* to influence the ball you stand in. Imagine it having to push and push, struggling against the rubber before it's face can even make an impession that you can see. Think of it pressing it's face hard against the ball to force an image on the inside. :) No matter how menacing it appears, it cannot hurt you. It will make threats, try
to scare you, throw images your way, but it cannot make it through the ball. You are completely safe. Your dreamworld is your demain and you have control over it's reality -- no one else does. This knowledge alone should give you the power to expell any such influence (subconscious or otherwise) from your dreams.
Now, the other type of dream that you can have is one where you travel astrally or ethereally. If you find yourself scared and confronted with something you don't like, and you feel you're exposed, simply imagine yourself back in your "ball." You'll find yourself instantly transported there where nothing can harm you.
The other major tool you can use, if you're confronted, is to summon aid. I think I understand you to be a Christian, and there are a vast amount of tools that you can use. Within Christianity, the name of Christ is extremely powerful. You can call upon Jesus, angels, archangels, guardian angels, use his name (to rebuke, bind, etc), quote scripture, etc. (Pagans can call upon gods and goddesses, totem animals, spirit guides, guardian spirits, etc).
What you have to understand is that your dreams are your domain. You are in complete control there -- even if it feels like you're not. Your key is to use whatever method gives you confidence to exert that control. And if whatever fear you face argues with you, stand firm and argue back. Remember the "ball" and that you are protected within your dreams -- there is nothing there that isn't a part of you (whether its an emotion, a memory, etc). And because it's a part of you, you have the power to do with it what you will.