HURLEY'S WAKING DREAMS

A focal point to the Hurley character were several things that could be interpreted as dreams.

For example, his ability to interact with ghosts. One place that happens in normal people is in dreams.

Ghost dreams:
In general, seeing ghosts in your dream symbolizes aspects of yourself that you fear.
This may involve a painful memory, guilt, or some repressed thoughts. You may be anxious about your ability to achieve something in real life. Or, you may be afraid of death and dying.
If you were frightened by the ghost or it spoke to you, this is a warning that some powerful pressure will be put on you to join in a scheme or activity which is against your principles. Resist the temptation with all your strength, and if necessary get help from a trusted friend or adviser.
If you dreamed of being a ghost, this symbolizes a feeling of disconnection from life and society.
This dream may be a calling for you to move on and abandon your outdated modes of thinking and behavior, and make a positive change in attitude.

Another aspect of the Hurley character was called the "Hurley Bird."  It sounded like it called his name when in danger, near danger or avoiding danger on the island.

Bird dreams:
Birds represent physical and emotional freedom.
They can also represent religious feelings.
Some more meanings: Dreams of black birds represent the “dark side” of the dreamer’s personality.
To dream of bird poop is a lucky omen, foretelling good fortune.
To see bird eggs in your dream symbolizes money.
To see birds hatching in your dream means you will be successful in your goals, but not for a while.
To see a bird nest in your dream represents independence and the need for allies.
To dream of dead or dying birds foretells a period of coming disappointments. You will find yourself worrying over problems that are constantly on your mind.
To dream of aggresive birds (if they were attacking you, or killing people, in your dream) is a warning to be careful with those around you.
Take notice on who you know in your waking life that could remind you of a bird, or who has a name that sounds like a bird’s name – this is the person to watch out for.
To dream of a cooked bird, suggests that you’re feeling guilty about something. You fear that someone will “find you out”, or believe they already have. 

Of course, Flight 815 was a big part of Hurley's life.

Dreams of airplanes are also common, and follow a similar tact as bird dreams.

Airplane dreams:
Escape from the mundane exigencies of the lower world.
Freedom.
The search for higher consciousness.
Travel into the higher realms.

Hurley also was consumed with his personal curse of his lottery winnings.

Wealth dreams:
Wealth for a poor person in a dream means trouble, because wealth can divert a poor person from the straight path. Wealth in a dream also denotes a righteous wife, a successful business, imposing one’s conditions upon his enemy, or subduing the evil of a jealous friend.

These standard dream interpretations mirror the character traits of Hurley in the series. So is it possible to link these dream states to what was the series to conclude that LOST was set inside Hurley's own dreams?