Yes, depending on what dialect you speak. If you speak UK English, Australian English, etc., it is a past tense of the verb "deam", whereas in US English, I think "dreamed" is used.
ZZZ (used to represent the sound of a person snoring.) That is an onomatopoeia. So it is technically not a word. It is actually zyzzyva, a South American weevil that tends to infect plants.