What you are describing sounds like night terrors. My daughter has them quite often and sometimes it takes absolutely ages to wake her up. She gets so upset sometimes that she cries and cries until she vomits.
She sits bolt upright in bed, looks like she is awake and won't let anyone touch her. She talks nonsensical stuff (understandable words but not making much sense) and often repeats it over and over. I try to cuddle her and sing to calm her but often she won't have a bar of it! One time she even slept (with her eyes open) while I bathed her after she vomited.
It's hard for me to describe the full night terror thing - they say that sometimes the child's day is replaying in their sleep, so sometimes a big eventful day will be a trigger for them (certainly is with Cairenn). Also, a child with a very active imagination may be a prime candidate.
Maybe have a net search on the topic to see if you can get some more advice!!
My kids have no hope - I still talk in my sleep and sleep walk....... 8-[
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