I'm not sure what elements the dream machine puts in the plot, but as a lucid dreamer I can give you some input.
Lucid dreams can happen again, and are easier to remember. The MC could wake up, think about how to fix it when he goes back to sleep, and do that. Though in real life dreams are not always consistent (mine almost NEVER are).
Experienced lucid dreamers, and I have done this with various success can manipulate the dream. It is entirely possible, and I have actually done anything from fly, to will the ground to move, to make cars coming at me fly over my head. It is not easy, and some physically intensive actions CAN make you wake up if your not careful (it has for me, and I have even been careful not to in the dream, knowing I do not want to wake).
If your character has messed with the dream before, he might be able to out do his opponent. Now if you are wanting to save save the other characters so that they are not lost, your character could save their lives in the dream, and then visit them in a latter dream. I've seen re-curring characters before, but not often as most people in my dreams are fictional characters from games or someone I really don't care to see again.
If the problem is saving them in the dream, then that is something I really can't say how to without knowing the plot in and out.
edited 27th Mar '11 5:32:45 PM by jasonwill2
as of the 2nd of Nov. has 6 weeks for a broken collar bone to heal and types 1 handed and slowly