Ok, I THINK I can see what Damascus is getting at. I'll try to explain this semi-visually:

1) Imagine a chalk outline of a body (top view).
2) This outline is drawn on a checkered pattern tile floor.
3) The person's head is positioned at square 10 from the left and 5 from the top (10,5).
4) The person's left hand is lying on square 3,7 with their elbow at 5,10.
5) When we "connect the dots" head(10,5) to elbow(5,10) to hand(3,7) - we get two lines (probably an "L" shape). This is our "proprioception" position.

So, I think the question is:
If in your dream you are curled up in the fetal position - but lying in bed you are really in this chalk outline position - are you aware that your arm is really in this (10,5) (5,10) (3,7) position?

-or-

are we only trying to figure out where our hand is relative to the grid (3,7)?

Looking back on what I just wrote, I think that the 5 glasses of wine I just had has kicked in - but who knows, am I on the right track Damascus???