Tell him to put the gun away.
Fear encountering a master

You have a 1350 rating here, he's a master, so you should by all means expect to lose if you are realistic :)
For me chess masters are the opponents I fear the least, because I have nothing to lose - the loss is the natural outcome that everyone would expect, and should the improbable event of a draw or even win occur, it would be a great success for me. (Besides, all the chess masters I know are very nice guys - or ladies :) and not at all fearful :)

I have never played a GM. However I do play that level on my computer and I realize I cannot win. So why do I play at that level? To learn how a GM would beat me. I learn a lot that way.

I think the only way to get over your fear is to get used to it -- play him as often as you can. And other masters, too.
I used to have a fear of players with a 2xxx rating OTB, playing much worse against them than against 19xx players. Then I joined a bigger club where they pair me with a 2xxx every couple of weeks, and my results against them have become a lot more normal :-)

Never expect to lose. You will always be right.
One of the secrets to winning in any sport is a positive attitude. Chess is a mental sport/game, and attitude is even more important in chess.
Stay positive, play your best and have fun.
Yeah, of course :) but if I, as someone who is currently playing his first rated OTB tournament with a current elo performance of 1250, take on a 2400 IM (as in the last simul I participated in), I know that I can't really expect to win, just as I can't expect to win the lottery jackpot, even if I tell myself over and over again I can do it :)

I experienced this when I first began playing chess -- any higher rated opponent made me nervous. Luckily as a beginner I ran into this often and lost many many games. My first 100 losses or so were a big help, after you lose the anxiety/fear, you can unreservedly try to kill your opponent in every game no matter who they are Of course I still have expectations when facing much higher or lower rated players, but from the first move you being creating your own destiny so to speak (too cheesy?)
One opponent (rated a bit higher than me) before our round came up to me and asked me a few questions about my last game, how I felt about draws, endgames, the kinds of openings I liked. I didn't mind answering him honestly because once the game starts none of that matters. All I have to do is play up to my true strength and if I lose it's just a lesson that will make my game stronger. (If I were a pro and needed the money I might try to keep the competitive edge though heh).
So from my own experiance I also recommend plaything these people often, the only thing you need to worry about is finding the best moves you can and playing up to your potential -- it doesn't matter if it's Kasparov or some patzer sitting across from you.

I guess what I'm saying is -- the beauty of a game isn't at the end from a win or loss, but the beauty is in all the moves in between when you played up to your full potential.
I've heard many stories about some GM or board 1 at a tournament win a game they were disgusted with due to how many mistakes or blunders there were on both sides (I've had similar games). On the other hand you can hear players talk about unbalanced and very hard fought games with few mistakes that were a thrill to play even if they lost.

I have a fear of being overrated (having a rating that is to high for my level of play, not that I will be viewed as a better player than I am).
Isn't that kind of the same thing?

It's confusing to me because, from my point of view, the discomfort of having an inflated rating would be my opponents expecting me to play better than I'm able to or people thinking I did poorly at a tournament for my rating when they look at the cross table.

Find comfort in knowing that he too may very well have fears when he plays against GM's. Continuing to play against stronger opposition is already a very good start towards improving your own play. When he wins, ask if he could spend a little bit of time reviewing the game with you, and be a sponge to what words are spoken during that interaction. :)
Best wishes...
Jerry

Fear is good! It heightens the senses and helps a player to concentrate.
Use the fear to find the very best moves. This is your opportunity to play your very best. Don't try to get away with trashy openings, and don't try to go for the draw from move one. You will lose.
Don't let the fear paralyse you. Play aggressively and go out for the win. Feel the fear, but don't play fearful moves. Play fieresome moves!
I generally play my best chess against significantly higher rated opponents, especially in slow time controls. This is fairly common. Kasparov even complained that all of his opponents played better against him than anyone else. He was right! I've seen some best game collections that included losses to Kasparov!
yeah! the beauty of chess... win or loose i'm still happy to play everyday!

A good rule of thumb for life--treat everybody with respect until they show you that they are unworthy of it. You are playing God until they show otherwise. And even if you are playing Anand, remember everybody can be beaten, and will lose games. Take strength from the thought that this person is a human and will make mistakes--it's your job to take advantage of them. I hope this helps.
Yesterday I play against a chessmaster in our school and I lose repeatedly... There's something about his persona that i'm really afraid of... and because of that I can't focus... What should I do...!?