An excellent post at Joe Faust’s entitled All I Have to Do is Dream (page stubbornly insists that you want to download Firefox, but for IE users, just click continue to read in plain text) regarding the creativity employed to expand upon dreams into artistic projects, whether paint or text.
I myself have used some portions of dreams in my writing, though not usually in a story. My long forgotten and abandoned novel was based on daydreams, so I don’t suppose that would count…
The Lost Children: A Charity Anthology