IMO, there is a place were the dead go. In the old testament it is Sheol i believe. In the New testament Paul describes the dead as "asleep". And we all know that there will be a ressurection. But spirits don't rise outside the will of God. God allowed the Real samuel to appear when saul went to contact him. Demons have lived on this earth longer than us. They know our every move, and only those who are outside of the protection of God can be decieved by their illusions. Just like angels, each demon has a specific function. Some are manifestations, others are influences. Either way, if the purpose of what you see has anything to do with everything else besides God, then you have the authority of God, through prayer, God will be present and will rebuke whatever is not of God. This is what is happening when we speak in the name of the Lord Jesus. It's not something you just say, you have to be in communion with God.
as for demon possession, i am not to experienced on the topic. Just one incident i can recall. None the less, this is still a type of demon. Just like our joy comes from somewhere, things like Depression and Oppression has a source also, being that these things don't come from God, He is not the source.
We have to understand however, demon possession is not limited to people who are not of God. simply because your flesh is a conductor of darkness. They don't need permission from you to mess with something this belongs to the father of this world, and this flesh.
Yet Christians, who are saved and sanctified by the blood of Jesus, can not be so easily dominated because those who live in the spirit belong to God. The reason we are tempted is because of this flesh, but giving in to temptation is the way we give permission to demons to start over shadowing us again. The way we overcome the temptation is by doing that which is of God. This is why i do not see how any christian can sit back relax and no do anything. Slacking off is then one way we give in to the lies of the principalities of darkness.
So if you are alive in faith and are not slacking off, God has you protected. But if you are spiritually alseep dead or still, you know the rest. God is not idle like an idol. He is Living moving, and we, followers of Christ, must also be moving and working.
This does not limit the power of God at all. If you read the story of Job you'll understand that demons do not have the power to kill without the permission of God Himself. they can do anything else to us, and they can only control us (as in the case of the over exaggerated movies, and other real life incidents) when WE give them permission to do so. Demons find more pleasure in the hearts who have already been cleaned, in other words, christians, but We have a more Powerful God who is protecting us 24/7 12 months every year. When eve listened to the serpant, that was giving permission. Then Jesus came and flipped the script. Jesus took whatever power satan had when he died on that cross.
Well this is what i know off the bat.