The clock is not only a reference to Exorcist III Legion - Legion's use of the clock refers back to the original Exorcist, where Merrin sees a clock stop.
In Dominion, I would guess that the dream woman represents the mother of one of the kids the Nazis were killing at the beginning of the film. If memory serves, it shows the woman with wind blowing her hair and on the soundtrack is heard a woman's voice saying, "Bring him back to me..." ... which I interpret as a plea from a murdered child's mother to Merrin's guilty conscience: "Bring my child back to me" - although of course this is something beyond Merrin's power to do.
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