Dear laceyjade,
As Mato so nicely put it, mental illness and psychic abilities are two sides of the same coin, and it is you who makes the difference - by choosing to align with fear or with love when you go through these experiences. The further you align with fear, the closer you are to insanity or your abilities ruling over you. The further you align with love, the closer you are to mastering your psychical abilities.
I strongly believe that if you try your best to stay aware and project love during these dreams/coincidences (forgot the better word), you will gain amazing insights about how your gift can be used for good. It demands a lot of courage and will to not to bend to selfishness, egocentrism and fear. You cannot cheat the universe - if you have fear or negativity inside you, it will be mercilessly pulled out for you to release it or submit to it, because that is how you learn. But if you manage to understand and unconditionally accept yourself, you will gain a truly wonderful gift. If you choose to ignore it and live a "normal" life, you will be reminded about it again and again, until you can not avoid facing who you truly are anymore (this has happened to me, so I know
).
I understand that you are in a lot of confusion right now, but you should always remember that you have chosen your life lessons yourself. You have come here consciously to experience everything you experience, including your dreams. They are not supposed to break you. They are supposed to make you stronger, wiser and more loving, and by holding this understanding and love in your mind, I am sure you will overcome this step to rise to a new level in your life.