*has a lot of things she "should" do* I should start a should list. And the more I write "should" the funnier the spelling looks...

Yes, you should start a should list, shouldn't you?

I've noticed that whenever my dreams inspire book ideas, they leave gaping plot holes and tend not to work out.

Haha. The only reason I don't is because I wouldn't have enough paper for it.

I've never had a dream inspire a book idea. But I know that in some cases, books that contain narrations about a character dreaming can seem a little clichéd and tacky. I should go over mine again... I think it's a bit like that. (another 'should' to add to my lengthening mental list)

Use a word processor. Unlimited pages.

Dreams in novels can be hard to write well.

I'd like some space left on my computer.

A dream can work in a novel if it's a pivotal part of the story. Also, if many dreams play a role in the novel, the dreams flow more naturally.

Use GoogleDocs.

I have written an entire short story that had a dreamlike, sensory, first-person narrative. It was very unusual for me, but it came out really well. It worked for the story and had a good response with the readership. It succeeded in being "deep," which might have been in part to the style.

On an average basis, though, while dreamlike narratives can work for a whole story, they more often just show up for a scene or two before the character snaps back to reality. If you can hit it, they're not difficult to write, because they just flow seamlessly from the brain. But that might be my personal writing style.

When the internet dies worldwide, you'll know that I finished my list.

I find scenes like that flow for me too; only since I don't have any critics in my house I'm not always sure it's working.

I love dreams.
For a writing class, I wrote a short story with dreams in it. The story turned out surreal and funny, just as I intended.
And, for my fantasy novel, dreams play a part in the MC girl discovering her identity. She eventually discovers that the dreams are flashbacks to something that happened when she was four, and has blocked it out because she was so traumatized by it.
My signature is a piece of one of the dreams she has.

Phili, your story sounds so cool; could I read it, please?

I second this. I've never read a story written in dream fashion. I personally find that the hardest part of writing a dream is to make it seem like a dream. My conscious mind really wants the dream to make sense, but I find that in actuality, they rarely do. This isn't such a problem when the dream is in fact a vision (as in most fantasy stories), but when it comes to something more realistic, I'm often stumped. Does anyone else have this problem/solutions to it?