hallucinations in sleep paralisis can be entertaining or
mildly painfull (tactile hallucinations), but they are only scary when you think that sleep paralisis is something scary. i didn't, not even the first time around. they aren't nescesarily scary, because the content of those hallucinations is simply guesswork. your mind thinks you are owned by some alien power (it's just your body, stupid), so it gives an image to it: a hag, a succubi - or it doesn't. creativity is fun though, so why not have sex with wild succubi monsters? i allways liked it.
a true nightmare (by that i mean a truely scary dream) is different, because it's the acute manifestation of a real internal conflict. it's the drama of your life condensed in a virtual situation wherein it seems as if not everything had been lost for as long as you can remember, but that you are loosing it right now. as a soul you go back (inward) to when (where) the division occured first, but you are a moment to late in your "time travel" and can't prevent the script from unfolding just the same again. (the time travel is really a self-travel, a travel into the center of the spiral of your conditioning)
the only way to induce it, i believe, is to have a clue about one of your major divisions and to dwell on it somehow.
i'm not sure i would know how to dwell on it, if i wasn't so comfortable to avoid the fucker from hell. but i have a clue about my divisions (from past dreams of such nature) and i could maybe find a way
... the movie shadow of the vampire with willem dafoe worked for me once. it had to do with how i reflected on it. i provoked the vampire, when i made fun of him and put his foto right into my personal blog ... so the next night he came at me and bit me. but it was only a mild nightmare.
http://tannenrad.blogspot.de/2009/04/enjoy-voices.html
one of the worst i had was indeed similar to an experience with sleep paralisis, but it wasn't a hallucination with open eyes. it happened while waking up, yet being unable to fully wake up though. at that point the daily state of consciousness is put to gether, which involves the (re)birth of your persona (excluding your shadow) and your respective worldview (excluding all aspects of reality that you don't want to deal with). i think this happens, before a sleep paralisis would occur, if it did - your mind is allready awake in slepp paralisis - mostly. anyhow, the nightmare was, that someone else would allow me to slip into my persona and my golden cage. he was the shadow side, of course, and he wanted to get into the waking state and into my physical body, so to speak - which meant that i wasn't allowed to - i would have to cease to exist, if he took over, so i guessed. i couldn't see him, but i felt that he controlled my dreambody (he moved it around, pulled it away from the representation of my physical body, i was allready half way in, felt it physically, then he pulled me out again) and at times his voice would manifest, revealing his intentions. an unenpathic voice that basicly forbids you to be born (= "awake" physically) - what could be more scary. "but but .. i want to live" and all that. the scariest thing was, that i knew he was a true part of me, and normally he would be invisible to me, but still controlling me. my shadow set's more parameters of how my waking life unfolds than my conscious ego. he is everthing that i forgott about, including all habits, not simply bad traits that i might have repressed for some particular reason. he is the violent uninhibited life, that is klaus kinski, or the like. and for him, my waking up means that he has go to sleep. but it's horribly paradox, you see: somehow his unenpathic voice is also the force, that puts me to sleep, as if he wanted that. that's the nature of the psyche : things seem splittet, but they are still one and the same. the shadow is like an image in the mirror, and he makes roughly the same moves that you do, but he does them for different reasons, than you think you do your moves. well that would be "dwelling on my division" ... not sure if i went deep enough into it, to get another nightmare tonight .... hope you get one, i mean, hope it helps

--- the shadow is somewhat universal, to the degree i went into it here ...