Experts advise Parents to always focus on the positive side of any child's behavior, channel his energys in constructive ways ,catch him doing something right and praise him.He is correct when he tells you , if he gets into trouble about a lot of things he lies to protect himself , how about forgetting the punishment part and try to get positive inter-action going with him, has he got enough outside activities and sports and Games is there any Male Family member can do some guy things with him.He seems upset hence the nightmares, focus on plenty of attention and talk to him not about his behavior but about any interests he may have any places you can go to together.