Hi Alamelu,
It sounds as if your friend might be suffering from so called night terrors. Night terrors are common in post-traumatic stress disorder (PTSD) following traumas, but it does not neccesarily have to depend on such a disorder. If it were a sign of PTSD, then you could await some pretty heavy trauma arising during a Reiki-treatment, or so I've heard.
I am not a doctor, but perhaps he should visit a sleep laboratory for a check-up. They would probably be able to tell what his condition is. Let your friend go see a medically trained doctor about this so that he may get refered to such a laboratory. If a persons sleep is disturbed severely that persons health becomes affected.
If I were in your position I would wait with giving Reiki treatments and go see a doctor. If he/she does not find any serious condition, I would include putting my hands on or above his head (around the brain) in the treatment and start from there. Some sleep laboratories need voluntary participants - it would surely be interesting to make it an experiment to se wether the Reiki treatment is working or not.
Go see a doctor, if nothings wrong then give Reiki around the head and perhaps the lower neck, grounding the way you usually do it.
Ivoryraven