This was around the time when I was 7.
I'm standing in the front yard at my grandma's house by her salmon berry bushes. I'm with a group of the Muppet Babies, specifically: Fozzie Bear, Kermit, Miss Piggy and Gonzo.
We're all just talking and Gonzo said something that pissed me off (I can't remember what it was) and I punched him in his big furry blue nose. He starts to cry and runs away shaking his fist and saying "You're gonna be sorry you did that!!"
I feel anxious...Miss Piggy says something like, "You're in trouble..... here she comes" and I start to feel the ground shake. Something very large (like "Transformers" large) is walking down the hill towards us.
I look up and I can see the top of an enormous blue furry head just barely above the (30'-40') trees.
I panic. I turn to run into the house and instead of seeing my grandma standing in behind her screen door (like she does when I come visit her), I see the cartoon of the Evil Queen from Disney's "Sleeping Beauty". Now I'm really scared. I run towards my grandpa's shop (N.E. of the house) and find him inside with all of his mechanic's clothes on (green long sleeve tee with stains and holes and a flight deck hat).
He looks at me like he's never seen me before and I feel anxious again.
I'm yelling "Grandpa!! It's me!! Help me!!" and he's just staring at me looking confused.
I start to look around the shop for something (a weapon? a hiding spot?-not sure) I see an escape!!
There is a little tunnel under the most SW facing workbench in his shop and I crawl into it. I start to slide down some sort of a chute in the dark and I can feel the rails sliding under my palms.
The rails are damp and bumpy. There starts to be light and I can see that I am sliding down a huge pink tongue and the rails are teeth (molars, specifically). I see the end of the slide and it's my grandma's front yard again.
(I may have woken up at this point and continued later or I had a Time Travel moment)
I run towards the house again and the Evil Queen isn't at the front door anymore. The Muppets are still in the front yard, just staring.
I run into the house and back into the family room and up the multi-colored (they really are different colored and carpeted) steps up to the second floor. I'm still looking for an escape. I see in the far back left corner there's a door, or a seam for a door, or something that grabs my attention enough for me to check it out. It's a cement stairway. Spiral. Old "castley" kind of stairway. I start to walk down and I can hear shouting. I get to the bottom of the stairs and I'm in a royal court of some sort and the characters from the Wizard of OZ are there: Dorothy, Tin Man, Scarecrow (I don't remember seeing the Lion anywhere).
The Scarecrow is running around and he looks scared. Dorothy looks worried. She turns to me and says "the Queen is going to chop his head off."
I feel anxious. I look around and I see the Queen of Hearts from Alice in Wonderland (the cartoon Disney version) and she's pointing at me and she's screaming "Off with her head!!" and I see a big two-headed battle ax above my head as I'm running.
Then I wake up.