Not bad, not bad user. I think I could work with that as a concept and use it as a container for various plots and sub-plots that the PC's interact with.
So far, all I have is that a dude buys a book from a shady dealer in the pursuit of absolute truth. He actually acquires this book second hand after his buddy, Richard, dies in a horrible accident involving the same book.
When you write a question in the book, you get an answer, but the answer itself actually manifests in real life. Richard pulled the ol' Hellraiser, wanting to have the ultimate sensual experience, and as a result gets splattered all over the walls of some strangers basement, thus becoming inseparable from his "true loves" in the ultimate sensual experience.
Now, what I want to do with this particular chapter is to resurrect Richard, From Beyond-style, and have him be the NPC quest giver that gets progressively more horrible as the players delve deeper and deeper into madness. The as-of-yet unnamed NPC who currently has the book is sort of like the frame narrative for the story, and as the players traverse his hellish dreamscape, they slowly uncover clues about his identity, eventually realizing he's become "the dreamer" and all existence is a figment of his twisted imagination.
But that's not all, I want the PC's to break the threshold and eventually enter the real world, so I can pull a mundane horror sort of deal with the whole concept, where they lose their fantastic "dream powers" and have to interact with a wholly alien presence totally disarmed in a conventional, yet twisted, setting.
That is a fantastic title user, well done.
Oh shit, I didn't even realize lovecraft had so many fictional books. Ironically enough, I own the complete lovecraft, and I probably should read it more thoroughly.