The Region of Dreams is the place where all dreams exist while they're being dreamt. Every time someone falls asleep, they come here.
In Planescape, the Region of Dreams exists within the curtains+of+vaporous+color.
Dreamscapes are dreams that are particularly real. Ordinary dreams require special magic or psionics to enter, but dreamscapes can be entered simply by walking into them in the Ethereal Plane. Dreamscapes form "bulges" in the curtain. From the outside they're usually 5-10 feet diameter, but from the inside they're unlimited (though not infinite). On rare occasions, dreamscapes rupture, spreading through the Deep Ethereal Plane and sometimes taking temporary or permanent substance by absorbing quintessential or stable ether. In this way, creatures from dreams can become real, although they are unable to leave the Ethereal Plane for long.
Sources
A Guide to the Ethereal Plane
Nightmare Lands
Manual of the Planes (D&D 3.0)
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