I've had my fair share of strange dreams. Sometimes, my dreams end up inspiring me to write something based on what happened in the dream. I've gotten a couple of short stories out of it, but mostly they're just too strange even for fiction.
I'm a lucid dreamer, which means that I can have very detailed, intense dreams, and sometimes can control what's going on. This can be tough on nights when I don't even realize I'm dreaming because of how realistic everything feels.
By the way, if you ever think you're dreaming, there's an easy test to check. Because dreaming mostly involves activity in your right brain, the left brain activites like reading tend not to be working. So, when you think you might be dreaming, try reading something. A book, a sign, or whatever. Most times you won't see anything but jibberish. Sometimes you actually can read something, but if you go back and look a second time the words will be different. Granted, logic doesn't always hold up in dreamland. I know I've spend more than one night breathing underwater without thinking anything of it. However, the reading rule at least seems to always work, so try it if you can.
As for bizarre dreams, I had one pretty recently that seemed to just about top all others. At the very least, it's in the top five weirdest dreams I've ever had, and that's including the time I beat the tar out of a vampire, and the time I was a god-like super-being and the star of my own anime show.
A week or so ago, I had this dream where I was in a sort of magical land akin to the Harry Potter universe. I was informed by a friendly stranger that I possessed hidden magic powers and was instructed on how to use them, and I even got a chance to duel an evil mage. The weird part was, for some reason, the only way to channel magical energy in this universe is by yodelling. Yeah, even in the midst of the dream, I thought, okay this is a little weird. Even the guy I was talking to said, "Yeah, I know, but dreams don't really have to make sense, so just go with it, okay?"
If you hadn't guessed, dreams are a favorite hobby of mine. I've found some useful research on dreams at a little site called Grasshopper Enterprises. If you're interested in dreams, check it out, or talk to me sometime. I've been dreaming a good 21 years now, so I have my fair share of knowledge on the subject.