Hey, I'm jumping in a little late to the conversation, but it certainly is an interesting one!
As far as the 'fearing hell' goes, well, I say yes. Not for us however. As a Christian, as someone who honestly loves Jesus, we are safe in His blood. We may fear our failures and sins, but that is only relying on our strengths, not the strength of what was done on the cross. What Jesus accomplished is enough...it will see us through even in our tough patches...we just need to keep looking to Him and all will come out right.
But I still think a healthy dose of fear of hell is a good thing....not because we fear going there, but because we know others will. How many people do you know and care about do not love Jesus? The Bible teaches us that hell is real, it is bad and it is eternal. This should motivate us to spread the gospel as nothing else!! So many people need to hear that wonderful, saving news.
As far as your dreams go, I know what you're talking about. I haven't had many, but over the years I've had a few dreams that I am convinced were demonic attacks. Not a lot scares me, but I could feel the evil. Scary. Let me ask you something....when you wake from these dreams and call on Jesus for help, do you do it with authority? It doesn't matter if you can't talk, speaking aloud in your mind is just as effective. Jesus has given us authority over demons, so let me encourage you...next time you have a dream, don't just say "Jesus help".....command any evil away from you in His name...in the name of His spilt blood for you. When it comes down to it, the demons can try to scare you, but you don't belong to them, you belong to God, that gives you a tremendous advantage...use it!!