BAD DREAMS (1988)
Starring Jennifer Rubin and Richard Lynch
Lame-ass, almost completely forgotten attempt to imitate "A Nightmare on Elm Street" has Rubin tormented in her dreams by a former cult guru (played quite well by Lynch).
As she waits to be cured of her mental malady by residing in a nut house, she watches in horror as her friends are murdered one by one by the evil, dream-stalking guru.
The scenes at the beginning, featuring the cult, are pretty cool. Lynch plays one evil Jim Jones-style character. The movie would have been much better if it had just focused on the cult and not delved off into dream territory.
The duller than death climax features a "Scooby Doo" style twist ending. It turns out the dreams were all just a plot by the mental institution to kill her.