Press Select to change characters.
Before entering the high school, make sure you have a lot of lives. You have to fight all the Bosses one after the other until you reach Freddy.
When you have no Zzz's,
you fall asleep. You can only dream-change yourself into the characters' icons you have collected. The boom-box wakes you back up, but you do end up where ever you were when you got the boom-box in the nightmare.
Recommended order of buildings
From left to right outside, second house, first house, run-down house, junk yard, cemetery, high school. Enter them in that order to save time, life, and Zzz's.
There is a location in the high school with stairs going down. At the end of that platform is another platform that is too far to reach. Do not try to reach it as you will lose a life, even if you try from above. Collect all the other bones and wait in a safe location until you run out of Zzz's. Then, change into the warlock, find that unreachable bone, and get it. Go back and find a boom-box to wake up again.
To make the weapons that the ninja-boy, warlock, ninja-girl, normal teens, and the other character specialty stronger, get three to four of each of the character symbols. Their weapons, kicks, and punches, will be stronger.
Sometimes you may find dynamite, which refills your Zzz's. When hit or when standing still, you will begin to lose Zzz's. When out of Zzz's enemies are harder, and you cannot collect the ninja, warlock, and warrior dream icons.