How to solve the item 7 (The Dream Machine):
Like you said, that book is only found after finishing the quest. So how to know the items and the order to use them on the machine?
Even before the Dreamer's Challenge Quest was completely built there was an old and partially destroyed dream machine east of Venore (here: https://tibiamaps.io/map#33011,32092,10:2) where we could see (in old times):
Stealth ring (north sqm)
A stone (south sqm)
Fire field (west sqm)
Water field (east sqm)
I wonder what could be the opposite to stealth ring if they kept it in the quest...
but that part was changed to (how we can see today):
Life ring (north sqm)
A stone (south sqm)
Nothing (west sqm)
Fire field (east sqm)
So the opposites are death ring on the south and water field on the west.
For curiosity: previously, the quest was not designed to use fire bug to enter... but torch. The book with that text was different mentioning the torches. As the torch didn't have "use with" function, maybe we should put it over the poison field, or to carry it with us and fire bug was implemented later.
The old book:
...
115 gold food
5000 gold runes and fluids
4205 gold equipment
3789 gold weapons and repairs
40 gold 10x4 torches for Dream Challenge
355 gold ammunition
4000 gold books and paper
...
That was changed to:
1000 gold 10 fire bugs for Dream Challenge
About the water field, once I made it wrong and I only had a vial with another liquid... that worked too... maybe all liquids will work.