a widespread belief

Personally I think if I were you, I would be a little scared as well, as any person who dreams something like this does have a right to be scared. If I were you I think the Best thing you can do, is to find a Good church or Pastor to talk with concerning your fears, and learn about the things you need to do to keep right with God as well. I know it can be quite hard to do the things we know are right and we will all be tempted, but in reality we are in control of our own life, and with the help and encouragement with Trusting Jesus we can get thru anything we are faced with as well.

That's the common notion of hell - burning with undying people, full of agony, pain, with demons torturing every individual. I don't think God designed it that way. Satan and demons will also be punished in hell. But I don't think hell will be burning forever. I do think it will also cease and the eventual punishment is not having a second life to be spent with God.

I think that a book that I am reading now might really help shed some light on what you are going through. It is "Destined to Reign" by Joseph Prince. See if you can get it from a local library and let me know when you have read it.