Tracy answered this.. from interview with WebMD.
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Hogg: Very often children will make noises or cry out, shout, and be vocal in sleep. As we get older, this can transition into adults talking in their sleep. Adults even wake themselves when they are asleep by laughing and talking. If it were night terrors, they'd be in a standing position. So it doesn't sound like night terror. If he's still sleeping, then it's obviously his way of vocalizing when he's dreaming.
One of the things moms can do to prevent children from becoming frightened at night is to limit television time. Very often the television is on in the background and we don't think that children are aware of what's happening on the TV, but sometimes they are, and it can disturb them. So it's being aware that children of this age are like little sponges and are taking in everything from their environment including the bad with the good. And this can often be seen at night when they are waking up.
When children are younger (under 18 months), it's the physical motion of walking, running, falling over, that tends to be associated with night terrors, not recollection of the day's events. So there's a big difference between what a baby and a toddler experience.
(you can check here....
http://www.webmd.com/content/article/62/71655?src=Inktomi&condition=News%20and%20Events%20-%20Pregnancy)
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And also, Dr.Sears gives some information about night terror.
"Do not try to awaken your child. Turn on the lights so that your child won't be confused by shadows. Remain calm, talk in a soothing tone, "you are okay, you are at home, you are in your own bed, you can go back to sleep". Again, speak calmly, and keep repeating these soothing comments. You can try holding his hand or snuggling him, but if he pulls away don't persist. Don't try to wake him with shaking or shouting, this will only agitate him more and prolong the attack."
"The following exercise has been shown to stop night terrors in 90% of children. For several nights, keep track of the time between falling asleep and the onset of the night terror. Then, wake him up 15 minutes prior to the expected time of the episode, get him out of bed and fully awake for 5 minutes. Do this for seven consecutive nights. If the night terrors recur, repeat the seven nights of awakenings. "
(here..
http://askdrsears.com/html/7/t071300.asp)