"That's something that doesn't make sense... let's go and poke it with a stick."
The start of this episode confused me for a bit, as historically there's few if any developments in the time between episodes (if that makes sense). Then we get them walking in a too-empty street, and someone creepy peering out from a window... and then they wake up in the Tardis. Ah, so I've not missed a bunch of episodes.
Then the dream master turns up, and now the fun starts. My guess for most of the episode was that the Tardis world was the real one, and the village was the dream, as the Tardis world is closest chronologically after the previous episode. Thinking about it, another way to solve this puzzle would be to try and remember what's happened - if the village is the real world then you can remember what you did to escape the cold star, while if the Tardis is real then you should have little or no memory of between the Tardis and the village.
Of course, the problem is then that *both* are dreams, which I did not see coming but makes some sort of sense in retrospect. The whole thing of falling asleep in one world and waking up in another is the kind of thing that would be utterly crazy in the real world but to your dream self would make perfect sense, to the point where you're not even aware that it's only in a dream where that could happen. The dream master did also seem to give in too easily, almost as if this was a game rather than anything more real. Which it is - it's the Doctor, daydreaming that he is the dream master. Except... how do you know that you've finally left the dream?
On the dream master being a representation of the Doctor: they seem to be making a point over the last few episodes that this Doctor is not nice. This is very much a thing of the tenth and eleventh Doctors - the ninth was a lot nicer, though he was also a lot more of a coward. #10 and #11 (especially #11, after seeing what he almost did in The Beast Below) would likely have actually used the delta wave thingy in The Parting of Ways, while #9 cheerfully admits he could never do so as he's too much of a coward.
Oh, and no crack in this episode either. Have they abandoned the arc image?