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The dream theory that most appeals to me is the idea that the brain uses REM sleep to run system-checks, to go over recent memories and lay down the tracks for them.  But the higher areas of the brain, the interpretive parts, attempt to apply meaning to this neural static, creating an illogical story that seems perfectly valid when we’re still asleep.  I can’t see how dreams themselves serve any purpose.  It seems most logical to me that they are the byproduct of other neural processes.  This may also explain why certain dream themes are so common in most people.  Certain memories (such as actually forgetting a test) and certain practical real-world fears are thought of frequently, and therefore have strong memory tracks.  When the brain attempts to apply meaning to its own meaningless signals, these “well-worn” tracks are often used as the basis for the story created.