Actually, your eyes are open, you just have the shades (lids) pulled down.

But seriously, yes, as far as I can determine, of all my dreaming, I have used the senses. I read one time where someone said that we don't dream in color. As far as I can remember, I have had colorful, vivid dreams.

In my dreams I have visual, voice, hearing and smell. I have no recollection of eating or tasting anything but probably have and just not remembering it. The thing about the smell part is I cannot smell in the waking state. Weird!.

I personally believe that all of our elected leaders should be tested to find out if they are capable of having lucid dreams, a vital component in developing and preserving a strong conscience.
Imaging this: The past five years are all a dream in George Bush's head, the night before he planned to go ahead with the 9-11 attacks, leading to numerous wars. Bam! he wakes up, splashes his face with some water, looks in the mirror and decides against it, his conscience having won out in subconscious battle with his ego.

I always use my dreams to help make decisions. Doing the right thing in dreams helps me ensure that I'm doing the right thing in reality. By 'right' I mean 'good'.

[edit on 13-1-2008 by doctormcauley]

This is an interesting question, and something I never really thought about before.

As far as I remember, touch, sight, and hearing seem to be heightened for me in the dream state. I don't remember smelling, or if I did it wasn't any better than normal. Also, there is a heightened "sixth sense", a precognition if you will, about my dreams when they aren't lucid. Kind of like watching a movie you've seen before, but this experience only happens when the dreams aren't lucid. If they are lucid there's no precognitive feelings.