Essentially you are viewing the dream through your dream body. I have experienced this a few times and had mixed results with RCs. I have had both occurrences where the DC that I was viewing performed the RC, and where my dream body seems to suddenly sprout appendages with which I can perform a RC.

What shadowwolf said about using 3rd person viewing as a RC is a great idea. Upon realizing you are dreaming and becoming lucid, you will either break free of the 3rd person viewing and be a separate entity, or you will become the DC you were viewing.