That club event was very cool. Unfortunately I had the opposite sort of experience during a Redrum show featuring Images of Violence and a number of friend formed bands. Devourment was playing and I was sitting on the red couch near the mix board. I couldn't keep my eyes open at all but instead of having a rest I was constantly feeling disoriented and frustrated. My dream basically became my memory and mind bonding and I can't keep track of whether I am awake or experiencing a dream, so I tend to not trust my senses even though I am awake (in my dreams the landscape is constantly changing) but trust them enough to wonder about the hallucinations that do occur. It happens to me in odd situations such as when I was driving home one night and pulled over to rest, and in Basic Combat Training when I would wake up and see shadows doing odd things with my perception, and then not believe or understand the guard when he told me the Drill Sergeant wanted to see me because I thought it wasn't real.
I'm not sure if I can recall the effect of music on my dreams, since by then my brain is scrambling the memory of the dream and experience so it doesn't always stay. I can remember at times falling asleep to a long playlist of Carlin or something else, and during my sleep Carcass and Morbid Angel come upon the player, so that some bizarre sound enters my half awake mind or even my dream and all dialog or listening within the state is blurred into the distortion of the music and the world becomes chaos and I find my character (whichever way I am formed or participating) retreating from the objects around due to their lack of sense and looking for something else.
I've also experienced the affect of music and sleep in regards to memory and recollection. I used to listen to Korn when I was in the Army and one of their albums was the only cd I had in AIT school, so I listened to it when going to bed, because I enjoyed the ambiance of it, at least in that it was as far as I had gotten with experiencing ambient music outside of Tool. I don't tend to that band anymore, but on the rare occasion I have listened to that album for whatever reason, the smell of AJAX, old wall paint, cheap mattresses and a dusty floor always comes back to me, the sensation of being in those barracks rooms comes back to my perception.