The heros find that either a peasant went insane and killed the mayor/king/other high ranking official and says that the 'Man in his dreams' made him do it, or, simply the high-ranking official died in his sleep for no apparent reason. Have this continue until you have the person who caused it (via the spells Dream and/or Nightmare. Then, the heros must somehow meet the person who did do it, (and know he did it, or at least that he's hostile) but you're all good DMs, you can find a way.
P.S. You May want to have the DreamWeaver get away, (for example: Dreamweaver makes an illusory duplicate of himself, Heros chase down the dupicate, who jumps off a cliff, and after all, who wants to go down to check?) so you can do The Castle , a.k.a. Dreamweaver's Revenge, another good plot.

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