it seems mantras are a good way to maintain focused awareness while lucid...a stable point of reference within a state which can be very distracting.
the most impressive experience "i" have had while meditating in the dream state was floating, while intoning AUM. soon all superficiality seemed to dissolve, and only the cycling vibrations remained, fading into a teeming void. very peaceful and releasing
http://www.amazon.com/gp/product/155939101...glance&n=283155
the above is a book dealing with the tibetan buddhist and bon traditions which auxin mentioned, and which seem to have influenced each other a fair bit. i haven't had time to delve into it much yet, so i can't vouch for it, but it seems a good introduction to dream yoga from an experienced practioner, in readily accessible language.
as far as karma goes in relation to the dream state, i have found dreaming to be an excellent state within which to identify and work with karmic patterns.
for instance, if you find you feel a strong compulsion to perform certains acts, or sate certain desires while lucid, you can be sure this compulsion exists in the waking state as well, though perhaps less noticeably, and hidden beneath clever justifications.
as well, if i dwell on loving-compassion while dreaming, i find these seeds readily blossom in the waking state.
keep in mind though that i only draw casually from the various buddhist traditions, so perhaps i do not speak of karma in the same sense in which you do.
oh, and i also have found the lotus position to be an excellent mode of flight
peace and love..
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