Myrk wrote:About Neo having powers outside of the Matrix from my view is like this. You remember the KFC guy talking about their has been more than one Matrix but those others failed. To me I think that the so called "Real World" is just another Matrix with more limitations.
Actually they did not. They have been able to predict the actions of the "One" in each Matrix. The agents even said right after Neo took off on a Superman flight that it was just like before. The Architect said that Neo would either choose saving Trinity or having to free some 7-8 of each sex to continue in the new Zion. If you think about it, in the first Matrix, Morpheus tells Neo the one who freed the first of them had the powers Neo now possesses. It would be easy for those that were freed to percieve that they are the first. And no way to know that the entire process is nothing but a perpetual cycle.
As far as the Matrix inside a Matrix, that would actually explain the dreams. If Neo is still in a Matrix, they would still be able to manipulate his thoughts. Therefore the dreams can be implanted. Agent Smith would also not be able to exist outside the matrix, even in another's mind.