From earlier this week.
The details of the first half of the dream are vague, but I know that in general I was with a group where people kept dying or suffering weird puncture-type wounds (including me). Very much a horror-movie feel, like, "Who's the killer?" So we were trying to figure it out and we ended up in this creepy old house owned, apparently, by the receptionist in my office. She's a fat middle-aged lady, perfectly nice as far as I can tell although I don't interact with her much. We had some theory about why the source of the evil would be in this house so she let us in so we could look around. We were snooping and opening and doors and whatnot and then someone opened a door to the basement and thousands of bats started flying out and swarming around. "Aha!" we thought. "That makes sense...bats!" And then a little creature that looked like an ewok but which in the dream was clearly called a hobbit walked out and started coming toward us. It seemed about ewok-sized as it came out the door but as it moved toward us it got smaller and smaller until finally it was about 4 or 5 inches tall.
We were satisfied with the bat answer but then we turned around and the receptionist-lady (Sharon) was standing there, kind of looming, and started to make some speech about how foolish we were and her powers and her teeth got real long and sharp and she turned bright red and she was smiling very creepily.
Then I woke up.
Then later, as I was remembering the dream, I began to realize that there were all kinds of very cinematic touches here and there foreshadowing the fact that Sharon was the evil thing. For example, there was a "shot" while we were snooping around in which she could be seen in the kitchen in the background, kind of out of focus, putting live frogs into a pot and kind of smiling.