I was in a some sort of theater where I was supposed to watch some kind of propaganda film. It was surprisingly easy to stay lucid in the dream, and the world seemed somewhat dirty and violent...so I found that a little disturbing, because I didn't want to be stuck there.
Wanting to learn what I could, I decided to sit quietly and watch the movie...not causing much stir. There were frequent references to Iraq, but none of the things that we think of as relating to Iraq were involved--no sand, no Arabic writing, no oil, and no turbans. It was as if they were re-using articles about a war on someplace called "Iraq" but making it apply to somewhere else.
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Of course, we could be in that same situation with no way of knowing--our "Iraq" might not be real.
My attention was drawn to the bad computer graphic animation, that looked like it had been done on an old 8-bit computer. They were showing clips from a video game, and treating it like a news report about a war they were waging in space.
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Something led me to believe they were showing the Commodore 64 version of "Alien"--the video game made from the movie. But in retrospect, it was actually just very generic space fighting...like Galaga:
...plus given the generally low-tech nature of this world, I would doubt they were a real spacefaring civilization.