First there is Reality Testing. How reality testing is done, is you ask yourself “Am I dreaming?” Finding that out in a dream is not always the easiest thing to do, but is usually quite obvious if you are dreaming or not. If you find yourself in an unfamiliar place, or doing something or seeing something that will not likely happen in reality, you will know that you are dreaming. Now if you are in your bed or in your own house, then you can try looking at something like a clock or reading a book or something, look away, then look back and see if the time is the same or the words you read are the same. Try changing the color of something just by thinking about it. Ask yourself this question “Am I dreaming?” several times during the day, then you will be more apt to ask yourself this in a dream.

Another way to realize that you are dreaming in a dream is to recognize a Dreamsign. When your recognize this dreamsign you will realize that you are dreaming. (ie. A pink elephant, meeting deceased people, or magically flying.) By keeping a dream journal and going back and finding things that are common in your dreams, you can choose a dreamsign that is unique to you. So when you see your dreamsign you will realize your experience as a dream, and can then further the experiments or work you would like to do in your dream.

vids:
Lucid Dreaming Fox News report
Lucid Dreaming GV