Sounds like a low level lucidity LD to me.

I've had them before, where I would go back and forth between thinking it was real, and knowing it was a dream. And the 3rd person thing is not uncommon in LDs either. Once you gain more control and have longer lucids, you'll be able to switch to first person.

As for clarity, you could try shouting "more clarity!" or something like that. I find that it tends to be hit or miss with me though.