For the most part, it happened in the town where my southern family lives. Specifically the street where my grandparents live, their house, their yard, and the entire area miles beneath that. There had been some sort of dimensional shift or something, and my grandparents' basement, for several years, had been the portal to the other side, or the Underdark. My grandfather befriended the people that lived in the Underdark which were very much like humans, only they had pale blue skin and gem-coloured hair instead of 'natural' colours. This is strange because my grandfather is the biggest xenophobe/racist I've ever met in my entire life. But I digress.
My grandfather, who in the dream was a dentist and a tinkerer of sorts, decided it was time for me to meet his friend Grendel, who was one of the underdark people. We packed up all kinds of weird trinkets and headed into the basement, and he showed me a door that I had never noticed before. There was this really long, damp, labyrinth-y staircase leading down to someplace that smelled like sulfur and berries. When we got to the bottom, we had to turn off all of our lights because any lights at all disturbed the underground people.
I got to know them and all that crap, and then the dimensions started to melt and twist, so I had to go to this center of the worlds or something, and kill the evil bad guy person to settle the shifting. I wish I could think of the words to describe how damn cool the process of getting there and fighting the wizardy guy was, because it was just really amazing. It was like I was walking through mud, and the air was made of mud too, but it was clear. So the air had sort of congealed or something.. And I was trying to walk fast enough to outrun this guy and find a place to hide and plot, but he was right behind me, seemingly not affected by the thickness of the air and ground.
Back in the underdark, my grandfather and cousins and random underdarkians were casting these weird colour spells that were supposed to help me out, but they weren't strong enough to transcend the whole dimensional tap dance. I could see the colours lingering in the air around me, and it was like the feeling you get right before it snows.. That sort of electric static-y feeling in the air. I could tell they were trying to help, and it totally inspired me. So I swung around and hit the evil guy in the forehead with this bucket I was carrying that had a Furby, a hood ornament, and a slinky in it. I don't know where I got the bucket, or why those things were in it, but it took care of him.
It would be cool if it had been a more elaborate slaying, I guess. But hell, it did the job. ;)
So anyway, then I went back to the underdark and everyone cheered and crap, and I woke up. It was like winning a video game, and actually liking the ending. That's the feeling I got from it. If that makes any sense.
There was a LOT more that happened, but it sort of came back to me after I wrote all the other stuff, and I don't feel like going back. This is probably boring enough anyway. ;) Yeah. The end!