My daughter, Ryleigh, is 2, and has had night terrors since she was an infant. This may stem from her daddy who was a sleep walker for most of his life. When she was really little I would give her the over-the-counter herbal teether (in the baby section)just as a precaution for a gassy tummy. But I read a few books (What to Expect the First Year) and they really stress having a calming routine before bed. Most everyone I talked to said a nice warm bath before bed. When she was small enough for the swing, she slept in that all the time. Now that she is to big I have (which she picked) a light show/lullaby music in her crib. It has fish and slow swinging monkeys and water noise in the background. It's very calming for her and she can control when it plays and stops.
This doesn't guarantee having no night terrors, she still occasionaly has them (once a week maybe). She opens her eyes and looks right at me, screams for me, and pushes & hits at me thinking i'm someone else. The only thing you can do for him at that point is soothe him and let him work out of it. I'll set her on the couch or walk around with her as I rub her back, tummy and face and talk to her calmingly. If you act frustrated it feeds into his night terror. Your calm voice will feed into his dream and help him out of it.
I should stress the ear infection though. Whenever my daughter had one, it only bothered her when she was sleeping and she would become hysterical otherwise she never tugged at it and was happy. You should definately take him to the doctor to atleast rule it out before assuming its night terrors. Good luck.