Siding with DutchRaptor on this one. The brain is a biological computer, dreams are based on material processes. We don't transcend out bodies (the body you experience in the dream is the same as in waking life, we don't experience our bodies directly, only our body map). In the dream you're only inside your skull.

You can manipulate space because the reality around you is virtual, but you can't escape time, your body is still in reality, progressing through a rem cycle. Any time dilation is illusory (still cool IMO).