He is in a thick fog. Hopper appears and leads him to a maze of mirrors. Ba'alzamon is there with several people all asking him why they were brought here in their sleep. One is from Tear. One in red and gold is from Illian. One from Tar Valon is a merchant in plain cut but very fine clothes. Ba'alzamon says the man from Tar Valon let the boy escape. He screams and disappears. Ba'alzamon orders the rest to wake. They all disappear, then the beautiful woman in white appears. Ba'alzamon addresses her as Lanfear so Perrin finally knows who she really is. She claims this place as her domain. She says her time in the bore was an endless, dreamless sleep then says, "Only Gray Men and Myrddraal are denied dreams. Dreams were always mine." She says she serves the Great Lord, but no other. She mocks Ba'alzamon saying despite his three thousand years of planning Lews Therin is back and the Aes Sedai control him. He was hers before Ilyena and he will be again. They disappear and Hopper takes him to a grassy hillside. Hopper warns him again to be wary. Of wolves, Hopper says, "All are here. All brothers and sisters that are, that were, all that will be." Hopper then flies away. The scene shifts and Perrin sees Rand surrounded by Fades and Gray Men. Rand burns them all. Perrin sees more coming over a rise and yells to warn Rand, but Rand turns and fires at him.
Perrin wakes with a burn on his chest. He goes to Moiraine's cabin, shows her the burn and tells her everything. She warns him to avoid the Red Ajah and be wary of his dreams. He asks about the name Zarine and she tells him it is a Saldaean name suited for a heartbreaker of great beauty. He goes up on deck where Lan is tending Mandarb. Faile is there and watches him.
More Perrin POV
Rand awakes thinking that Perrin was real and he almost killed him. He is in the hills of Murandy close to the Manetherendrelle River. A female merchant and her guard approach. She says they are on their way to Remen. Rand attacks, killing them all with a sword of flame. Afterward, there are eleven men when he counted ten before. Callandor continues to pull him.
More Rand POV
[#2] Compare this to Osan'gar's remembrance of "endless nightmares." (LoC,Prologue)
[#3] So he took the land route, not a boat.
[#4] A Gray Man. Robert Jordan has also confirmed that the woman was, indeed, a Darkfriend.