The dream is intended to be bizzare...it gets a lot stranger later on...it starts to cause problems for Ikiji (and later Matsuko begins "sharing" the dream with him, and some of the things they experience cause them to question their sanity...)
Yay can't wait! (sorry, I moved here because these comments are not directly related to the story)
Also, just out of curiousity, where does this whole thing take place?