Darkly Dreaming Jeffster

Last night I had a dream. I was in a church, and behind where I was sitting was a plaque inscribed in German. I tried to read it, but I didn't recognize one of the words. My former boss from Germany was sitting next to me, so I asked him about it. He explained that there were actually two words.  One of the words was an abbreviation ("und" was written as "u.").  The tight spacing had fooled me into thinking it was part of the next word. With that clarification, everything made sense. I woke up.

Two questions:

  1. How could I "be fooled" or "figure something out" if all of this took place in my head?
  2. Didn't Batman: The Animated Series teach me as a child the impossibility of dream reading?