Ok, I had never heard about these kind of machines, but they sound fascinating!  I love (most) of my dreams, and have years of journals where I right them down. 

I would think someone (anyone want to work with me on it?) to make an app that you could actively monitor when you have reached REM sleep.  Then it could gently wake you - so that you are aware, but still in your dream.  I know this sounds far fetched, but usually when I realize I am dreaming, I only have a few moments before I wake myself up.  Being able to control a dream, sounds like the most amazing VR console in the Universe.

From the site:

"The REM-Dreamer uses infrared sensors to detect when you are in REM (dreaming) sleep. At that point the REM-Dreamer gives you sound and light cues (beeps and flashing lights) to remind you that you are dreaming. Thus, external world stimuli are transferred to the world of your dreams, and it becomes easy to achieve lucidity."

http://www.remdreamer.com/

An experienced dev surely could write a program for that. I could even download the Kinect Development SDK for free from Microsoft. No idea how to code, though.

Maybe the chances to find someone are better on a different, more coding related forum?

I'm a crazy human and I have crazy dreams. I don't need an app to wake my ass up during a fucked up dream. I wake myself up. If you don't wake up during a dream and the dream finishes then you don't remember the dream. I have woken up during a dream and remembered the dream then went back to sleep and continued the same dream. I don't even have to write my most intense dreams down. I still remember at least 4-5 crazy, intense dreams purely from memory. Once you wake up during dream you must review it a few times or it is lost.

I have also become self aware of myself dreaming and obtained full control during dream. Example: dream tries to scare me but I realize I am dreaming then I turn "scary" situation around where I have full control.

A dream where you are aware you are dreaming is not the same thing as a lucid dream

A lucid dream doesn't have to mean I am aware that I am dreaming and it doesn't mean that I'm in control of the dream. "Lucid" means that unlike normal dreams your senses are vivid as in real life, that the dream landscape looks as real as reality, or even clearer. For most people lucid dreams are extremely rare.

Most people have never experienced even one lucid dream in their whole life, but most people have experienced parts of dreams where they are aware they are only dreaming and where they have a sense of control.

EDIT: Actually I am wrong, I checked the common definition of "lucid dream" and apparently the requirement is to be aware that you are dreaming and nothing else.

What I have always defined as a "lucid" dream can possibly be named something else, because it's very real. Rare, but an amazing experience.

I've had a dream where the landscape was "real" and was aware that I was dreaming. In one dream I dreamed I was a gang leader and many fights broke out. I controlled the dream because no one could fuck with me. I also had dreams where it felt real but didn't know I was dreaming. One is that I encountered 2 lions that ate someone then transformed into t rexes which ate the two people sitting in back of car next to me (I was in the middle of back) then chasing me in an almost exact replica of my hometown that I grew up in (shooting fireballs at us also). Ended up in river bank trying to bob up and down in water while they were on banks looking for me. Got close to them floating down river then woke myself up. Also, had a dream where I was an action hero or good guy fighting a bad guy. Ended up killing bad guy but was shot. I was then driven to water park where they put me in a lazy river (was supposedly a new procedure before surgery) where I floated looking up at the sky while bleeding in the lazy river. I was then taken to operating room where an ex told me everything would be fine. They then put me under and it felt like I was going to sleep in dream. I then had out of body experience in dream where I floated up and looked down at myself while being operated on. I was then sucked back into my body and wwoke up from dream.

Exactly. The connection to OBE's. See my edit above, because I was wrong with my definition of a "lucid" dream, but what I was after was exactly the type of vivid hyper realistic dreams you describe above. What's interesting about these very clear dreams are that they're not only amazing as an experience itself, but they work as important pathways to OBEs and even spiritual encounters, much like you experienced.

Wow so vivid! 

Sounds like you can already lucid dream just fine.  Doesn't sound like you need this device.  What this does, it notice when someone is in REM, then gently partially wake them so they can control their dream.  Sounds like you already have it down, congratuations!

Right, and the idea is that this could monitor someone as they enter REM sleep.  It would sort of make them more aware - so they could have some conscious control of their dream, but still be asleep.  I.e. a 'lucid dream.'  I could see how this could also be used to help people overcome things, and work through issues.  (Hey, drink less beer and eat more vegetables.)

Of course, then that also leads to potential for a more sinister side.  (Like, listen to one direction, you enjoy one direction.)

If such a thing could exist, I'd want it to wake me up COMPLETELY, before my sleep apnoea does (that "falling out of bed" feeling). Lucid dreaming is a pain in the arse when it happens nearly every night - I have to check to make sure that things didn't actually happen.

I'm generally very curious about lucid dreaming and all. Just one question: Why use Kinect?