I sometimes experience dreams in the first person(as we do in our waking hours), and sometimes in the third person(as we do when watching a movie). Sometimes it alternates between the two during the dream.
Usually in first person. Rarely in third person, but sometimes it alternates... sometimes I'm not actually in the dream at all.
just exactly the same as i experience living when i'm awake. just in a universe where certain things work differently then they do in this one. yes books, computer displays mirrors, smell touch taste, everything works just fine just as completely as it does here. psionics works better there then here, teleport, levitate, that sort of thing, but those are the only real noticible differences, other then styles of things being different, they way you'd expect them to be in a different country, and the location of places geographically in relation to each other is different. like i said, parallel universe. but otherwise, just the same as being awake, only in that different kind of place rather then here.
I experience both modes when dreaming, same as my waking state. I am constantly viewing/reviewing my interactions and thoughts from a third person perspective. Helps keep me honest with myself.
That would make me nuts. However, in my dreams, I can watch myself as I interact with others. Sadly, I can't smell or taste in my dreams.
I can't really recall a dream in third person, It's usually always through my eyes. Perhaps that is due to my history with lucid dreaming?
I've had one lucid dream that I can recall, where I could control the dream and it's environment. I'm not sure what triggered it, but I knew it was a dream and actually changes the elements of the dream. Curious...