Jewels! Julie girl! You didn't tell us about your dreams... I hope you do.
Anyway, I figured out how my dreams work, which pisses me off because it's more scientific than mysterious. I always love mystery compared to scientific reasoning (spirituality is my life), but to the point...
I figured out that I dream the most when I only sleep for about 10-20 minutes, usually when my alarm goes off and I consciously fall back asleep to wake up soon after. So I usually dream about random things I've thought about the whole day, or things I'm worrying about. Somone told me once that dreams are for you to subconciously make sense of everything you've seen throughout the day, that you have many many dreams every time you sleep but you don't remember them. That's why when you fall asleep for a short period of time you remember more of the dreams because deep sleep doesn't cause you to forget them.
Dreaming is indicative of poor sleeping. Dream less = better sleep.