Yay!

I wish I knew this came out, I don't remember seeing this in your collection.
Well, it looks like you've gotten better with your anime studio, and so have I. I thought it was funny, and quite strange in a good way. :] I would upload mine, but my computer has trouble exporting animation to flash files, Well, I think you did good, and maybe you can do even better if you put your heart in it!

Maybe work on movement a little more, the walking was a bit irregular(they didn't move their legs) but pretty much everything else was good in it,

I was looking through your videos to see you Oswald stuff agin, and I came across this little slice of your work.

Practice makes perfect

Well I would have sat through it longer if there was better audio. But other than that I would like to see you practice more my friend.

Good,

But your art could be better.

Apart from that, work out a preloader, and some sounds, and you're set.

Storytelling? Anyone?

I'm glad you're getting beter at Flash, and it's good to here this is your longest movie thus far. However, from my point of view, the story is too thin. I don't know who the characters are. I don't know what the heart shaped balloon is for. I'm not sure why the kid's face mutates. I'm not clear on who the new character is at the end. And when it's all said and done, I'm left possibly more empty than when it began.
I suggest you introduce the characters so that the audience can familiarize themselves with them individually. Furthermore, if the characters don't add to the story, it's okay to cut them out. I know this was a rendition of a friend's dream, but it's okay to take poetic liberties on your own stories, even those based on fact. (Hey, look at pretty much any historical fiction!)
Another suggestion is that you let the audience know that it's a dream in the flash, and not in the description. That way, the audience can put the events in context. For example, you could draw yourself with your friend, and have your friend say, "hey, I had this dream the other night, and I've got to tell you..." and just wavy-fade into the dream. At the end, you could sum up the events by having your character say something like "that's a really weird dream." Maybe throw in a humorous punchline like "that's the most normal dream I've had all week!"
I'm just throwing out ideas, but I'm left wanting more at the end of this flash movie. Good luck on this movie, and anything else you produce.

Nice try.

Criticize on the quality of your flash. Why didn't you put any audio in the first place? It would get a better rating.