I am an experienced child therapist and came across your discussion about nightmares. In my experience, once children calm down from the bad dream, parents can help by explaining that "dreams are stories we tell ourselves for a reason -- we just have to understand the reason." Then parents can think with them about upsetting events that occurred the previous day that might have caused the bad dream. Typical experiences that can cause bad dreams are: fights with siblings or friends; getting in trouble at home or school; losing something important; being ill and having to stay home, etc. To facilitate this process of helping children understand their bad dreams, I have written a children's book coming out in April of 2012 entitled Mommy, Daddy, I Had a Bad Dream! for ages three and up (www.mommydaddyihadabaddream.com).
I'm pre-ordering my copy!
Thanks for replying Martha and I'll be sure to post your book on my fb and spread the word that you stepped up to give some advice.