I thought it might be neat to post dreams here, in case you can remember them. I had an absolutely terrifying one last night that I still remember vividly.
It looked like I was in medieval times, and I was riding with my cohorts to this dark-looking castle. Once there, my view and actions became those you would expect if you were playing a fist-person adventure game. At the outside of the castle, there was a key attached to a chain. I followed the chain, which was under a chicken coop and a bale of hay. I pushed the bale out of the way and smashed the chicken coop to pieces with my sword. As I took the key, I saw a keyhole nearby, which was obviously meant for my new item. I used the key, and suddenly swarms of bees went after me and my pals. It switched to third-person view as my character ran into the castle, but the camera showed one not-so-lucky person being stung to death.
Inside, the view switched to a dark, moonlit room, with a door on either side. At one of the doors, every so often, a man would look through the keyhole, and man, that eye scared the hell out of me. Eventually, I heard someone whisper "Over here!" in the direction of the other door, and another eye was staring at me.
"Now's your chance", he hissed, and handed me a small, metal, pointy rod that looked like it was on fire. I ran to the other keyhole, waited for that creepy eye to show up again, then used the rod on the keyhole when I felt the time was right.
Unfortunately, it seemed that I really screwed up there. The rod was yanked out of my hand, the door burst open, and in stepped this giant, werewolf-looking man. The view switches again to third-person, and I watch as my character is ripped in half and feasted on. "OK," I thought, "where's the Game Over screen?"
To my horror, while the camera was in the same place, the wolfman got up and looked right at it.. "Now you have nowhere to hide, Ben," he snarled, and that's when I realized I was somehow here the entire time! He lifted me up by the neck and a fist flew through my belly, and that's when I woke up in a sweat.
That was probably the most messed-up dream I've had ever.

so far when i had dreams i have never had things happening to me, because in all the ones i have remember it like i am not actually there and it's more like i am Observer.

Last night I dreamt there were Germans invading and for some reason I was with Andrew Keen and Cory Doctorow and we used Bic pens to blow up the enemy's installations.

I just had a freaky dream yesterday night - I dreamt I was back in the army. I swear, lol. Good grief, I woke up sweating snowballs before realizing I had 3 hours to prepare for school. :3

How were the controls? Usually they suffer when you get switching between first and third person
Frankly I'm glad I never remember my dreams, my waking thoughts are fucked up enough, don't need to get into the diseased morass of my subconscious

Or maybe you would just have really boring dreams. I've had dreams about getting ready for work, only to wake up and have to do it all over again.
Though I suppose not remembering would be preferable in that case as well.

I used to have problems remembering mine, too, but I am trying something out I heard from a friend. Apparently, if you write down what you dreamed right after you wake up, you can begin to see similar elements in your dreams, and if you can convince yourself you're dreaming, you can begin to manipulate the dream to your liking.

yep, it's called lucid dreaming :) But it's very difficult to do and not everyone can do it (for more than a few seconds at least). The cool part is that you feel what is happening in the dream, but can manipulate it as you wish... go fly around for example :)
I did try a few methods to get it working, but gave up in the end. This is a nice page to start with: http://en.wikibooks.org/wiki/Lucid_Dreaming

During the dream, I didn't even think of controls. I basically walked to where I wanted to be thinking "Walk there", and when I wanted to interact with something I would think "Use that", "Get that", or "Put that there".

you can also wake up and end up with the feeling that you're floating out of your body. It's just an illusion involving the body image, but it can be very disorientating.

The other night I shared an apartment with Eugene Levy in a dream, but he didn't talk much he was just always in the background.

Same.

does anyone else have dreams where your falling and you can actually feel it?

No, but when I'm half asleep sometimes my legs suddenly jerk.
I had this dream last night where I was slashed with a knife when coming out of a Dollhouse and I was forced to doing calculus for the assailant to save the world inside a Honda Accord.