Note: Parts of the dream sourcebook are taken WORD FOR WORD from the rulebooks; my intention in doing this is that people shouldn't have to search through multiple sources in order to have a complete picture.
(If you have a problem with this please e-mail me and not Matthew. I fully support this... especially when parts of the Dreamworlds are not even in the 2nd Edition Kult book - Jason Just)
The realm of dreams is a universe of its own. In dreams, we can be and do other things than in real life. The laws of physics don't apply there, time and space lose their meaning. But dreams can also meet our world and affect it.
The realm of dreams is not a separate world, independent of reality. We create our own dreams, they rise from our unconscious selves. Forgotten people and events appear there, sometimes without being recognized. But all times and places in dreams have a direct relation to ourselves. In dreams, we meet things from our previous existences.
Dreams can affect our world. We can create beings in dreams which step out into reality. We can grow in strength and power there, and then enter real life wearing our dreamed selves. We can change things in dreams, and thereby alter reality.
The World of Dreams
Several people can have the same dream. Nobody knows exactly how this happens. Perhaps it has something to do with telepathic contact. They create the dream together, so that it is affected by all their personalities.
The story of the campaign must determine what happens in the dream. Sometimes a dream may be far from reality, with flowing colors, weird perspectives, and a warped sense of time. Other times, it may be realistic and close to the waking world of the characters. If they are going to spend a long time in the dream, perhaps a whole game session, it is best to make it realistic because that makes it easier for the players to visualize and act in.
Time in Dreams
Dreams and Reality
Characters may find clues in a dream, which can be used to solve a problem in real life. Perhaps the clues are deeply buried memories from earlier lives, or things they will find out in the future. Dreams aren't concerned with time or space.
Precognitive dreams are such where the dreamer experiences something that will happen in the future. For a moment, he is able to see through the lie that time really is. It is not possible, not even for masters of dreaming, to intentionally summon true prcognitive dreams. Such experiences come of their own accord (when the Gamemaster needs them). The dreamer doesn't know if the precognition is a true prophecy until the event really happens.
Messages can arrive in dreams from skilled dreamers and from creatures outside the normal world. Dreams are a way of seeing through the illusions and meeting characters from the other side.
Characters can affect reality in their dreams, e.g. destroy a dangerous object which is the also destroyed in reality, or set someone free whose dream self is imprisoned, so that he can return to his physical body and wake up. Nothing stops dreamers from trying to affect reality, even if their score in the Art of Dreaming is low. The difference to skilled dreamers is that the amateur doesn't know whether his efforts have any effect or whether he is out on a wild goose chase.
Sometimes, dreams and reality flow into each other so that we cannot tell them apart. This happens when a dreamer, consciously or not, has opened a wide portal between dream and "reality." The effect is similar to what happens when the illusions fade away in our world. Anything can happen. Everything flows. Strange creatures appear.
But when the illusions crumble, we see into another world which (at least we think) is really there. When a dream merges with reality, it is because there is a person who is changing the world around us. The changes depend totally on the dreamer. If he or she is awakened, the disturbances go away.