Hi Andy,
That was one long story! 🙂 What I very honestly think is the best thing to do is for him to visit with a medical doctor. Have him make notes so that he can be as brief and clear as possible...and get right to the point of what is really frightening him.
To me, it sounds like he is having a huge OBSESSION over what was a dream... Lucid dreams are dreams in which you are aware and CONTROL your actions and words...nothing more...nothing less.
Yes, Panic attacks can cause ALL KINDS of physical reactions including rapid heart beat and chest pains...
At this point, even though you are very caring and wanting to help your friend -- a doctor needs to be the one to address what your friend needs... You seem to be as emotionally involved with your friends problem as HE is!...and this is not good. He needs to speak to someone who is detached emotionally and can listen from a totally clear perspective. When you speak of your friend it is like "YOU" are going through it... and this is not necessarily a good thing (even though you mean well.)
Why do YOU feel you need to give him more information?? You should, to my way of thinking, detach yourself emotionally...it sounds as if YOU are more worried than HE is... Please...you do not need amatuers advise here...someone needs to visit with a doctor and then follow the doctor's advice. Do NOT assume you know what a doctor might or might not say. Maybe you should visit with a doctor, also...?? It might help you out, too.

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