I haven't posted on these message boards in awhile, but I logged on and saw your topic, and since Dream A Little Dream is one of my favorite 80's films I decided to reply.
It's probably a good thing that you've never seen DALD before, because when most people see it at a young age they get totally confused. However it should make since to you now, just keep in mind that it's an original, sorta avant-gard film, with a great 80's teen vibe to it.
As for DALD2, completely different from the first. It had a really low budget, a bad script, and was just really flimsy and cheap. In my opinion you should just check out the first and forget about the second. But regardless of it's sequel, DALD remains one of the best teen movies of the 80's, in my humble opinion.