Dream Prison
Click on the center of the room and a stone pedestal will appear. Click on the hammer on the bottom left side and use it to break the glass on the stone pedestal, then click on the book to add it to your inventory. A flower will appear on the right side wall, click on the flower to exit the prison.
Tree of Truth
There are five animals scattered throughout this scene that must be placed onto the tree. The bird is on the upper-left side of the tree limbs, the butterfly is on the upper-left side of the trunk, the lizard is on the left wall, the turtle is at the base of the tree, and the squirrel is on the upper-right tree branch. After placing them back on the tree they will return to your inventory as pieces of bark. Put them back on the tree in a certain order. The animals will be numbered in your inventory from one to six. Place one, two and three in order on the top section of the tree. Animals four, five and six will make up the bottom.
There are several dream jewels in this scene. Three are in front of the tree, one is on the tree's lower root, the fifth is on a rock formation in the upper-left side of the scene. The last jewel is near the door that opened by the base of the tree. Meditate on the completed jewel and the answer the first dream-puzzle question: "What lies beyond the walls of the dream prison where Lilith sent me?" Answer: "Outside the prison walls lies the place where fairies originated." Leave through the door.
Water Chamber
There are puzzles on either side as you enter, one will make a wavy circle, and the other will make three shapes. The top is similar to a peanut, bottom left is a diamond and bottom right is a square. Click on the tiles to rotate the pieces to make these shapes. After completing the puzzles, stones will be visible in the pond two at a time. This will give you a 50/50 chance of choosing the correct stone, remember the stones that are correct, if you make a mistake you again start at the beginning.
The final puzzle on the wall is different from the others. When you click on a tile you flip the adjacent tiles instead of the one you clicked. So start at the bottom of the picture and click above any red tile until the tile turns green. This may take a few tries.