"...not the Freudian, "psychoanalytical" method, which dismisses the manifest dream-content as a mere "facade," on the ground that the psychopathology of hysteria leads one to suspect incompatible wishes as dream-motifs. The fact that the dream as well as consciousness rest on an instinctual foundation has nothing to do either with the meaning of the dream-figures or with that of the conscious contents, for the essential thing in both cases is what the psyche has made of the instinctual impulse. The remarkable thing about the Parthenon is not that is consists of stone and was built to gratify the ambitions of the Athenians, but that it is - the Parthenon."
-C. G. Jung [CW 9 p2, Footnote 63 on par. 316]

"The Analyst . . . must consider any dream interpretation invalid that does not win the assent of the patient, and he must search until he finds a formulation that does. . . . The doctor should regard every dream as a new departure--as a source of information about unknown conditions concerning which he has as much to learn as the patient. It goes without saying that he should hold no preconceived opinions based on a particular theory, but stand ready in every single case to construct a totally new theory of dreams."
-C. G. Jung [Dream Analysis]

1. State the dream in terms of structure, examine for completeness.
2. Establish the dream context, the situational material in which the dream is imbedded.
The context is composed of:
a. Amplifications of the dream images, which may include
(1) Personal Associations,
(2) Information from the dreamer�s environment, and/or
(3) Archetypal parallels;
b. Themes interconnecting the amplifications, and
c. The immediate and long-term conscious situation of the dreamer;
d. The dream series in which the dream occurs.
3. Review the appropriate attitudes to bring to dream interpretation:
a. Nothing can be assumed regarding the meaning of the dream or of
specific images.
b. The dream is not a disguise but a set of psychic facts.
c. The dream probably does not tell the dreamer what to do.
d. Awareness of the personality characteristics of the dreamer and the
interpreter.
4. Characterize the dream images as objective or subjective.
5. Consider the dream�s compensatory function.
a. Identify the problem or complex with which the dream is concerned.
b. Ascertain the relevant conscious situation of the dreamer.
c. Consider whether the dream images and the psychic development of the
dreamer require a reductive or constructive characterization.
d. Consider whether the dream compensates by opposing, modifying, or
confirming the relevant conscious situation; or
e. The possibility that the dream is non-compensatory: prospective,
traumatic, telepathic, or prophetic.
6. Hypothesize an interpretation by translating the dream language in relation to the
relevant conscious situation of the dreamer, test it against the dream facts, modify
where necessary, and state the interpretation briefly.
7. Verify the interpretation
* [from Mary Ann Mattoon, Understanding Dreams, p48]

The important point is to - Write down your dreams. Set your alarm clock ten minutes earlier and have your dream journal handy. When writing your dream do not edit it in any way, write it as it happened. It is best to write out the entire dream right when you wake up, but if this is impossible make a few notes that will remind you of the dream, its plot and symbols. When you write down a dream, give it a title, write down the date and a brief statement about what is going on in your (inner & outer) life.
It is important to write down your dreams not only so that you don�t forget them, but also to objectify the dream content, to give it a form that you can then analyze consciously. Another important aspect of this is to draw or paint the images (even if you "can�t draw"). Also draw or map out the aspects of the dream which are relevant.

Even though your dream may have other people that you know in it, it�s your dream and so it is about you. In order to get at what a particular dream symbol means to you, you need to bring into consciousness your associations with that symbol. Though there are many common associations (i.e. bed => rest, sleep, sex, etc.) and this is where some dream dictionaries come from, you are better off creating your own �dream dictionary� for each dream.
Ways of doing this:
The Radial method: write down the name of the dream symbol and then, on lines radiating from the name (like sun rays), write what comes to mind in association.
The Positive/Negative method: write down the name of the dream symbol with two columns bellow it. Draw a �+� sign over one, and a �-� over the other, write down positive aspects under the former and negative aspects under the latter.

This is a very thorough dream analyzing method that I have put together from other methods. Use a large piece of paper and map out the flow of the dream. For example: you start at you house in your underwear, then go to work where no one notices. At the first point you would write down the description "at house in underwear" and also the associations you have of your house, your underwear, etc. Then you would draw a line to a second point where you would write the description "at work in underwear no one notices" and also your associations for work, the people you see in the dream, etc.
This method keeps the narrative, the symbols, and the associations together making connections easier to see. The next phase would be to actually map each point on the flow chart, however this would only be done if relevant, such as wandering through a city with an odd structure, or swimming in a lake in an old neighborhood on a hill in a city; Situations where the structure seems meaningful, and especially when you have a sense of the structure without having �seen� it in your dream.

By far the most common type of dream is the compensatory dream. This refers to its function, which is compensation by the unconscious for the conscious state - showing you �the other side of the coin.� An example would be looking down on someone at work, and then seeing them elevated, literally or figuratively, in a dream.
More rare are the other types of dreams, such as the archetypal. These are the "big dreams" of indigenous cultures, they represent not a personal situation, but a transpersonal one from the collective unconscious. These can be both overwhelming and transformative, and it would be wise to write, draw, and bring as far into consciousness as possible.