'Reliving experiences' is part of the Exposure Therapy that is used to treat PTSD. I remember watching on NOVA or some science program how virtual reality was being used to treat veterans suffering from PTSD. By reliving a dangerous situation in the VR world, they are able to 'recompile' the program in a safer context than it actually happened.

EDIT: Found the link http://www.nami.org/Content/NavigationMenu/Top_Story/Using_V...