The men run straight into the old folks' home, with fat Amy struggling after: "If something doesn't make sense, let's go and poke it with a stick!" Inside, there's all kinds of old people, just wicked old, the way they get in Leadworth. He gets in the faces of the old people, and they act creepier and creepier, and then comes the birdsong.
It's gotten cold in the TARDIS, with everything off. The Doctor tells them not to trust the old people, and then starts yelling about the TARDIS. Even the scanners are down, so they can't see where they are, so they could be anywhere. Choose this life, and you can be anywhere, which means you are nowhere. A man appears, up on the balcony: Him in the bowtie. He giggles, scaring the hell out of the Doctor, laughing at him. "Honestly, I'd heard such good things. Last of the Time Lords, the Oncoming Storm..." He calls himself the Dream Lord, not the Time Lord, but the Doctor's not convinced. He's older, sassy; the Doctor's weirded out by his bowtie. He tosses something through the image of the guy, who blips around the TARDIS inspecting them.
Amy suggests that the Dream Lord creates dreams, and the Doctor nods. "Dreams, delusions, cheap tricks." The DL asks if the "gooseberry," the third wheel, has a guess, and Rory gets pissy about that: If anybody's the gooseberry, he says, it's the Doctor. That's half-true. The DL says it's a delusion, but not one of his. Rory says Amy shares in this delusion, and the DL tells her to choose. She swears she has, and the DL just laughs. "You can't fool me, I've seen your dreams! Some of them twice, Amy." Some made him blush. The Doctor is not having it.
"Where did you pick up this cheap cabaret act?" The DL laughs and says it's the last thing the Doctor should needle anybody about: "If you had any more tawdry quirks you could open up a Tawdry Quirk Shop! The madcap vehicle, the cockamamie hair, the clothes designed by a first-year fashion student... I'm surprised you haven't got a little purple space dog, just to ram home what an intergalactic wag you are." It's not the meanest thing he'll say, but it might be the truest. The Doctor doesn't quite let it show on his face: How much of him, after the Time War took everything, exists just to make him cuddly? He wasn't always so funny, so charming, so adorable.