"You're not dreaming. This is the TARDIS. You're standing in her halls right now, in the flesh, with me. You haven't opened the watch, or if you have, she's snatched you up before my consciousness had a chance to come out." The Doctor smiled faintly. "I'm afraid she's not feeling well at the moment. Something happened to the matrix. As best we can tell, she's been pulling people from their proper time and place and depositing them here. I suppose she might be lonely, or perhaps she's hoping the people she selects can help her. Then again, it may simply be a malfunction. Something she can't help, like a muscle spasm in a human with a neurological disease."
The Doctor tucked his hands in his pockets and sighed. "I'm sorry, John. I'm so sorry. I know what you have to do, and I know it isn't easy. I doubt seeing me is terribly pleasant for you, but I promise you, I'm not going to hurt you. Look at this as a second chance. There's no need for you to change. In fact, if you don't happen to have the pocket watch on you, I don't think that you can."