1) Colour, definitely colour. I have yet to see black blood.
2) As most of the rest have said, only when I am not aware I am dreaming. The minute I hit the ephinany, I plunge back into reality at hyperspeed which results in a woozy head.
I
really hate those moments.
"Say, am I dreaming? No wait! I did not mean that! I'm... urm... er... no, NO! Don't end the dream yet! I mean this reality! AHHHHhhhh
hhhh... ..."
3) I have music in my dreams, if I leave my CD-Player on next to my bed. Metallica-induced dreams can be quite warped... ...