by the way its not technicly an algorithm, its just a structure diagram. sorry if im annoying, i just like to be exact and i like making a point.

but i think you did a great job, it will help beginers who dont quite undertand it.

p.s. heres the algorithm version(making it coz im bored)
-----------------
1. IF state = dreaming then
2. DO RC
3. FOR lucidity 1 to X
4. shout("stabalise") OR LET hands = rubing
5. let body_velocity = walking-speed AND LET eyes = looking-around
6. loop
--------------------

lol