Wow. Clearly you are in the Matrix.
I remember once a few months ago, I had the "SD Card Removed" popup and it was so weird, then it was "Unfortunately Process: DreamView Scape 7 has Stopped" CREEPY!!
That is a good description about the cut scenes. That happens, to me, too. I will be a character but then I am an observer, so I can see everything going on and I don't have control anymore- usually at the end of the dream, too.
I don't want to get into a dream and half-ass the RC. But that is exactly what happened. It was a totally weak RC unlike anything I'd do IRL. More on this in a second. At least you didn't do what I did a few nights ago. Consider RCing and then decide not to because the situation feels too real?
They are cool, but a challenge to describe. It's often impossible to capture some of the nuances with written text.
It wasn't clear whether a) in the dream I was watching a movie, or b) I wasn't really physically *in* this part of the dream, but the scene was just being presented to me in a movie-likeway. It's a subtle distinction, but quite real. I love these hybrid (and often indescribable) forms of perception that dreams make possible!