Originally posted by Sasha
I started reading Lucid Dreaming by LaBerge. He said his and other others' experiments indicate a nearly direct correspondence between the flow of time in an LD and in the waking world. This seems reasonable for my few lucid dreams, but doesn't seem right for a very few of my non-lucid dreams, which seemed to last longer than actually possible.
One key thing to remember here is that our dream content and linearity is all based on our memory or recall and not on physical or "real" time. Time is mostly a perceptual concept - unless you're standing somewhere counting down seconds and minutes on a watch, your perception of time is hardly ever correct. We've all had experiences in which we either think time went quickly or slower than in factual time:

"Oh, it seems like only yesterday..."
"Time flies when you're having fun.."
"That was a long movie..."

In instances where it would seem that you've experienced a one year lucid dream, it's really more likely that you were involved in a dream plot or storyline in which certain events actually happened while you were dreaming and other events were "made up" by your memory to try and make sense of the events. So when you recall your dream, you're combining things that happened in actual dream time, with events that were created by your mind as memories to complete the dream content.

Some would argue that we indeed travel through time - perhaps those who experience or have a deep belief in OBE's.