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Howie Day – I'll Take You On Lyrics 21 years ago
The end of the song should read-

Can we stop all the world now
Sooner or later
I lose all control now

When the rain stops we'll end it
whoa, now
Nothing to fear here
In my baby's arms

I'll take you on (X4)

Anyway, I think the song is about two people being together because they desparately need eachother.
The girl he is singing about may be depressed or unstable in some way. He wants to see her as being right for him. She wants her to be his illusion, but also he wants to be her distraction for whatever is going on in her life.
*Be my illusion and I'll be your distraction*

At the end where I corrected the lyrics I think he is saying that they each have nothing to fear as long as they are there for eachother.
*Nothing to fear here
In my baby's arms*

* This information can be up to 15 minutes delayed.