I liked it when my dog tried to woof at something in her dreams but didn't open her mouth in reality so it was just a quieter, stifled version. Used to call them her muffled wuffles.
My do used to run and bark in his sleep as well. One time he even jumped a foot in the air. When he was really out of it his breathing would get really heavy and his 'lips' would flap. It sounded like a person blowing a raspberry.
I've never had a dog, but I love to watch cats sleep. It's so cute when they smack their lips and their whiskers and paws start twitching. What sweet dreams they must be having!
I agree. Running and woofing in their sleep is way cute. Some nights i hear both my dogs, my cat also runs in his sleep, and hubby snoring. It can be quite noisy at times.