Hey dreamship. I'm sorry to hear about your cat.

I don't think anybody could prove tthat dreams are all in your head, but rationally, if you think about it, you will realize that no one has ever really been hurt by anything in a dream. Try to remember that; I know it's hard when it's actually happening but if you think about it enough while you are awake it will help. The only thing that matters is how you react. I think ImageAll is correct in saying that you should face whatever is scaring you in dreams, and it will go away. Maybe you should re-read the section on nightmares in EWOLD.

Good luck. I hope you can get rid of this soon and start enjoying your dreams again.