Bear, I'd say your friend is 'merging' with all the parts of himself. The party atmosphere, the conga line and the rhyming all point to togetherness and a sense of well being. What a wonderful dream!

Blessings -
Iris

I agree with all the interps. As for another thing that rhyming can show us, especially with the "do-overs", dancing, etc.. is that it is a very childlike attitude right now. Enjoying life and the pleasures of it and what it has to offer..rather than getting hung up on the little things like adults tend to do. I especially see that letting the little things go when he gives his friend the do over and they move on.
His dream seems to be telling him that he needs to let things slide rather than letting them bother him. And to have fun with a child like attitude. Look at things in life as if he has not seen them before, smile and laugh as much as possible, play like children play..not as adults do, etc.
I hope this makes sense to you and to him. And I hope he truly enjoys this time in his life and the great lessons it can teach.