Dreams: How To Induce Lucid Dreaming:

The average person spends about one third of their lives sleeping, and while research on the matter appears unclear, each dream can last anywhere from a few seconds to 45 minutes.
Lucid dreams are dreams in which you're both aware that you are dreaming as well as capable of controlling the nature, direction or content of your dream. While it may sound straightforward and simple, consciousness in the REM state is no easy task. Here are some tips to get you started dreaming lucidly....

The first step is to become well-practiced in remembering your dreams. Researchers have found that introverts generally have an easier time with this. Keeping a journal solely for the purpose of recording dreams is helpful. It seems to reinforce a psychological or mental significance that enhances dream recall. Since lucid dreaming rarely occurs without our intention, it's suggested that you say to yourself "I will remember my dreams", or even write down this intention in your dream journal before sleeping every night. Upon waking (especially if waking in the middle of the night) and before moving too much, record as much of your dreams as you can remember.

Once you've become quite good at dream recall, you are ready to try some lucid dream techniques. One such technique (explained in "Lucid Dreaming" by Stephen Laberge) is to constantly remind yourself that "all things are the substance of dreams." Laberge claims that seeing our waking experiences as dreams helps to "break the automatic habits with which we are used to seeing and thinking about life." (pg 144) In "Lucid Dreaming" Laberge mentions several techniques to induce a lucid dream, including one by Paul Tholey, a German psychologist. Tholey suggests that whenever you remember, and as frequently throughout the day as possible, ask yourself if you are dreaming or not, as well as in every situation that seems dream-like. He says that it may also be useful to employ this method immediately before sleeping.

Buddhists seem to have been exploring lucid dreams for some time (the potentially first mention of lucid dreaming was in a manuscript called the Yoga of the Dream State, written in the 8th century), and have developed a number of methods with which to induce lucid dreams. "One Tibetan Buddhist was instructed by his lama to visualize an 8 petaled rose with a white light in the center of his throat...a technique that's supposed to focus concentration with an intensity that allows consciousness in the dream state. Tibetan lama Tarthang Tulku has a similar technique. He says to visualize a beautiful soft lotus flower in your throat. The lotus has light-pink petals which curl lightly inwards, and in the center of this lotus is a luminous red-orange flame which is light at the edges shading to darker at the center. Looking very softly, concentrate on the top of the flame and continue to visualize it as long as possible.

MILD (Mnemonic Induction of Lucid Dreams)
1. In the early morning when you awaken from a dream, go over it until you have memorized it.
2. Then, while still in bed and returning to sleep, create the intention of lucid dreaming next time you are asleep.
3.Visualize yourself back in the dream, being lucid.
4.Repeat steps 2 and 3 until you feel your intention is clearly fixed, or until you fall asleep.
When you awaken from REM, your brain persists in a REM-like state for several minutes after. This is an optimal time for entering a lucid dream. MILD seems to work well for those with high motivation and excellent dream recall.

I also found this technique while researching lucid dreams:

THE TWIN BODIES TECHNIQUE

1. Relax completely - After awakening from a dream lie on back or right side with eyes closed. Tighten and relax whole body, breathe deeply etc. Let go of other thoughts and affirm intention to enter dream state consciously.
2. Focus on your body - Focus attention on each part of body and notice how it feels, watching for vibrations or other strange sensations. When these sensations arrive, following will be a complete paralysis of the body. You are then ready to leave the paralyzed physical body and enter the dream body.
3. Leave your body and enter the dream - As soon as the physical body is in a profound state of sleep paralysis, you are ready to go. This paralyzed physical body has a moveable twin, called your dream body. Imagine yourself in your dream body, rolling or floating out of your physical body. Jump, crawl or fall out of bed. Sink into the floor. Fly through the ceiling. This is lucid dreaming.
Commentary - As soon as you step out of bed, remember that you are in a dream body, and everything around you is a dream too, including the bed and the sleeping body you just hopped out of. You can verify whether you are floating in your astral body by using some tests:
1)Try reading the same passage from a book twice;
2)look at a digital watch, look away, then look back a few seconds later.
(taken entirely from link above)

Further Tips

• A method suggested entirely by the Stephen Laberge is one he invented himself. He suggests the counting method (one, I'm dreaming; two, I'm dreaming; three, I'm dreaming, etc) and eventually you will find that you ARE dreaming...hopefully while being conscious of it.

• Looking at your hands in your dream may spark lucidity. Try to look at your hands frequently in waking life.

• For those having difficulty, it may be easier to become lucid closer to morning, when the REM state is of a longer duration.

GOOD LUCK and feel free to post your experiences and/or add further suggestions. You may also read my previous post on dreams and the hypnagogic/hypnopompic state HERE.