Tim Schafer's Psychonauts is, in a way, based on dreaming, except that someone else is entering into another mind, without control over that mind, making it a very subconscious, dreamlike, experience...

What would be awesome to see would be a game that is a little more 'Nightmare on Elm Street' based. Where the main character has to embattle daemons in his own mind that maybe enter through an external source... Think of all you could do with the worlds! (and the music!!)

Brady Hearn

I never played psychonauts. I wanted to but, didn't. I like the idea and I have a similar story.
The main character go to a sleep clinic and the doctor there is crazy and using people for a 'dream machine' he built. The machine uses people's dreams and another person can see what the other people are dreaming. This is dangerous and the protagonist has to escape his mind and the people in the sleep clinic.

I like the Nightmare on Elm Street idea and music is very important in my games.