I've never heard of dream reality combat. I don't know if it's real even, but if it is..someone correct me.
And magic AP? i only think AP is astral projection. My opinion is that it's your body or soul..it's hard to explain well. But it seems like an out of body experiance, where some do it sleeping for example the body will be there but a part of it, will say travel, move around, go places, ect. For newbies it isn't safe to try on your own..but it often can come on command, well say with meditation and stuff. Other times it will come naturally.
I'm so sorry, for me i find it hard to explain well. But check out the AP articles and the forum section.
I really hope, based on your past posts(all incredibly heavily videogame-influenced), that I am wrong in assuming you mean Magical Action(or Ability) Points, often abbreviated AP or MP... because both those are very fake. As for dream reality combat, no clue, but the phrase as a whole doesn't make a lot of sense...