the Istakhara has Absolutely nothing what you have said about it.
Istakhara is Only about consultation from Allah. to Ask Allah to do the Best for us, in the decision, which we are going to make. and it is ONLY a DUA, nothing else. its not a spell , not anything else but a simple Dua, whose translation is given here.
"(O Allah! I ask guidance from Your knowledge, And Power from Your Might and I ask for Your great blessings. You are capable and I am not. You know and I do not and You know the unseen. O Allah! If You know that this job is good for my religion and my subsistence and in my Hereafter–(or said: If it is better for my present and later needs)–Then You ordain it for me and make it easy for me to get, And then bless me in it, and if You know that this job is harmful to me In my religion and subsistence and in the Hereafter–(or said: If it is worse for my present and later needs)–Then keep it away from me and let me be away from it. And ordain for me whatever is good for me, And make me satisfied with it). The Prophet added that then the person should name (mention) his need.
Sahih Al-Bukhari – Book 21 Hadith 263"
you only have to read this Dua , after Isha prayer, or after -tahajjud prayer. and leave everything on Allah after it. You wont see any sign, you wont see any dream. so treat it only as a Dua
Here is detailed view that how to pray it: http://islamqa.info/en/2217