Craven's (arguably) most iconic creation, Freddy Krueger has already fought Ash on a few occasions.
The Dreamlands are a different sort of reality. Actions in the Dreamlands are taken using mental attributes. Tasks related to Strength now use Intelligence, Perception replaces Dexterity, and Willpower replaces Constitution. This means characters will most likely have different Life Point totals than they do in the waking world (though Hard to Kill still adds bonus Life Points). When using Quicksheets, Directors should use Brains in place of the other attributes.
Unless altered all humans (and many supernatural creatures dream). However, most beings are oblivious to the nature of their (mostly harmless) dreams. However certain entities, known as Dream Killers, have the ability to cause the events of dreams to affect a material body.
In the next few weeks I plan on statting out Freddy and maybe coming up with a Dream Warrior quality.