Hi There- Dreaming indicates a seratonin/melatonin issue- too much of a good thing, I guess you could say.
Here's an interesting, brief article you might find helpful...
http://www.geocities.com/hairybobby2000 ... adian.html
I actually never dreamed when I was depressed, but I did wake early. Now that I'm on an anit-depressant that increases seratonin, I dream constantly- very strange, vivid dreams that I recall throughout the day, and before I fall asleep I usually recall the dreams I had the night before- only it's not a problem for me. I don't mind at all - I actually think the dreams are novel and interesting.
Dreaming a lot does indicate you're not spending enough time in the deeper, more restful stages of sleep. Normally, the REM stage (dreaming stage) occurs just after falling asleep or just before waking- a person should only spend about 20% of sleep time in REM. So it makes sense that if one spends most of the night in REM, feeling tired and lacking energy during waking hours will be the result. Exhaustion causes one to be less active, less inclined to excercise, and this feeds depression. It can be a vicious cycle.
Try taking a sleep aid. I take diphenhydramine (a children's dose of Benedryl, as it's called here in the states) sometimes to help me get through REM. It's very safe, totally non-addictive, and you can get it over the counter, without a prescription. It's also fairly inexpensive.