Computer and the brain are VIRTUALLY IDENTICAL.

Mind is so powerful and no one knows the power of mind which can make a human being a superman we only use very small % of our brain to know the power of mind first read Power of Mind as per Vedas. Now how your brain work for dreams. We have got two type of mind conscious and subconscious mind to know  how does subconscious mind work please go through this article. Now let me tell you that the computer and the brain are VIRTUALLY IDENTICAL.

Both have short term storage, long term storage as well as a small amount of RAM required for manipulating data.

The computer TEMPORARILY stores information on the disk wherever it can find the room. One page of text can end up scattered over different areas of the disk. This is why we defragment the disk. Defragging gathers all of the peices of a memory and stores them together in a single place where it is easier to recall.

The brain stores every bit information that we see, hear and smell all day long. Like the computer, it stores information at the first available site. 

When we sleep, we are actually defragging. As the memories are scanned and reunited in the correct order, we are actually "passing over" older stored memories. When that happens, that memory becomes part of our dream. 

So as we are sleeping and the brain is filing away our memories in their proper sequence, it's passing over memories that we incorporate into a "dream." 

Now you might say, "Well, why did I dream that I had a horse with eight legs and it could fly." Maybe the horse is just a horse, and the eight legs are in relation to the little girl in India who had eight limbs (you may have read about her) and the flying part is from a memory when you were four yrs old and pretended that you could fly. That's a rough explanation but I think you might understand what I'm trying to say! lol

I believe that's why our dreams often do not make much sense! And even when we think we have dreamt something that we had no previous knowledge about, the chances are that somewhere in our past we at least saw or read about it.

Our brain stores information. When we are conscious, we can manipulate ideas. But when we are asleep, we are not actively thinking. The movement of memories causes dreams.

Likewise, the computer often contains errors that are corrected or removed with Disk Scan. The brain might also contain "bad sectors" and this is why we often totally lose memories. The memories are gone because those particular brain cells are defective.

And then, when we die....some people say that their whole life passes before their eyes.....it does. When we die the memories are up loaded. To God? I don't know. I don't even believe in god...but I do believe that our memories flash before us and there must be a good reason for that!