Your dreams. Throughout the game, you have several dreams. These visions help explain the storyline better. When you wake up from the dreams, your life is healed as well, which makes it well worth it to fall asleep in the hay.
I
"The straw is a small comfort in your first day's travel. You drift into an uneasy slumber, wondering about Mordramir. Where is he now? Can you rescue him? You dream of dangers that lie ahead."

II
"When you clear your mind of the day's troubles, you start to think about the goblins. They appear to be rational. Perhaps you can reach some agreement with them."

III
"The poison from the spores must have killed the goblin king, but there he was, alive! There is something very magical inside these dungeons."

IV
"You quickly fall into a deep, healing sleep... Colorful images of a beautiful enchanted city pass by. All the city people are young and glowing. Fountains fill the city, and the splash and sparkle of water are everywhere... Suddenly the images go black. A face appears... Mordramir! He is different from how you remember him. His gentle features are now withered. His kind eyes, now cold and sunken, seem to look through you with a dark, penetrating stare. You wake rejuvinated, but disturbed."

V
"You fall asleep imagining a peaceful dragon civilization... It is underground, in dungeons that look vaguely familiar. You get a strange sense of - it's difficult to pinpoint - eternity. It feels as if the civilization has existed since the beginning of time."

VI
"You dream about a meeting between Mordramir and a council of wizards. They have created a magical weapon, but there is a problem with it... The dream changes: You see a wall of fire. Now, in the flames, you see men attacking dragons. There is a flash. All are dead. You see another attack, the another lethal flash. Armies block the exits of the dungeons, trapping the dragons inside. One escapes..."

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