I've been trying to mine, or rather just get over my fear of going underground. All the noises in the walls are not helping! Most stressful game ever!
Also, torches every two feet.
I had similar problems once. I had built tunnels everywhere and got resources through branch mining, and it got to the point where I had so isolated myself from monsters that I was terrified to face them. I was even scared to chop down trees in daylight in case a monster came out of a cave. It sounds stupid now that I think about it.
I resolved it by playing several of Vechs' Super Hostile maps, thereby forcing myself to confront monsters in large numbers. When you can take on a Creeper drop trap with stone tools and no armour, and not die in the process, you realise there's nothing to fear in vanilla Minecraft.
Except cave spiders, fuck those guys.
I've been meaning to get back on the server, but every time I try I find myself an update ahead of the server.
Instead I spent the time finishing the renovations of my mob trap, now its exterior is made from stone blocks and coloured wool, which is much nicer than the dirt/cobble look it had before.