This was great stuff. I recently started doing Vedic meditation, which is mostly like transcendental meditation. In about 2/3 of my sessions, which only last about 20 minutes, I will find myself in a state much like you describe. I will be awake, but also having either auditory hallucinations, or some sort of vision much like a dream state — usually just flashes of color or brief images like I would see in a dream.

I don’t mean to make this sound weird or than it is, because I have been scraped any meaning from them. However one auditory hallucination that I heard while going into meditation, which stuck with me, was this phrase: the Devil is a small target.

I still haven’t figured out what that means to me. I don’t even believe in the devil. But it definitely came from my subconscious, so go figure.