I don't claim to be an expert in these matters, but my friends occasionally ask me to give my take on their dreams, so here goes.
As far as I understand it, dreams are rarely to be taken literally.
They have a tendency to speak to us in symbolic language, so all this demon business may refer to some kind of problem you may be having dealing with
something which is bothering you.
Perhaps you have been given some kind of responsibility which you don't feel you are able to cope with, and would rather find someone else who you
feel could deal with it better.
The demon could represent this problem, which keeps flitting form one person to another, but always ends up coming back to you.
For instance, you say in your OP that you have difficulty empathising with people you don't personally know.
Perhaps a situation has arisen where you have to do this, as it reflects upon you in some way.
Sometimes dreams use common phrases to get some kind of message across, for instance in this case, 'We all have our demons to excorcise' type
statements, or 'we have to face up to our own demons' type things, so maybe you have seen a fault in someone, but something is telling you that either
you have a similar fault, or your interpretation of that fault is wrong in some way.
Just throwing a few ideas out there.
Hope it's at least interesting if not helpful.
ETA Graceunderpressure posted while I was writing this, and the option 'B' says it far more succinctly than my interminable rambling.
A nice touch of humour thrown in for good measure too.
edit on 19-1-2011 by Illegal Alien because: ETA
edit on 19-1-2011 by
Illegal Alien because: Krap sbelyng