In theory that could work, yes.. But I think such a means of telepathic communication is utterly impractical - the problem is not finding 'brainwaves' (information) but more reading them and interpreting them in any sort of useful form ("mind-reading") which would be nigh-impossible given that everyone's brains and neurons are arranged differently.
Actually, despite this, if people could indeed detect other people's brainwaves, a crude communication system could be made, with brains merely having two brainwave states - "high activity" and "low activity" - allowing binary data transfer as long as some protocol was agreed on. This would not allow a high enough 'bandwidth' to sync two dreams together, though, so for this purpose it's not really useful. [/computer jargon

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If you don't understand what I just said I don't blame you - I'm a programmer
Anyway this should very probably be in "Beyond Dreaming"..
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