The original, Dream Warriors and New Nightmare I think are really great horror movies. Dream Master is really fun in that highly polished, late 80's, studios were actually starting to make money and made one good mainstream one before it all went to their heads kind of way.
The remake is really kind of terrible. It was going somewhere interesting when there was a taste of Freddy possibly being wrongly accused, but then of course no one had the balls to go there. That would have been too interesting. Jackie Earle Haley was really great in the role with what he had to work with. I really liked the performance and he made it his own, but everything around him was just bad.