Judging by the approach as described in the site, I can point out a couple of things that may be worrisome.
1. Custom made EEG sounds very risky, not health-wise, but in terms of feasibility. You might end up with very weak electrodes that pick up signals filled with noise and artifacts.
2. You really need to spend precious time to understand the brain map available for EEG recordings and how to make inferences on the results as depicted by the respective software. Unless you are at least at a subjective "intermediate" level of understanding of EEG techniques and methods, then this point stands.
3. And unless you are fully aware of the limitations of using EEG data to answer specific questions I'd advise you to look into that as well. If you're looking for brain waves only, waves that can tell you if the user is in an REM state, an alert state, an epileptic state etc., then EEG can help you with that. It does not go any further than that I'm afraid.
I have the feeling that you got overexcited by the mention of morse code while in a dream state. I am completely unaware of the experiment and it would be nice if you could provide a link or more details on it. It strikes me as odd that someone could provide decipherable afferent information through such a restrictive range of voltages. Was his input recorded by tapping fingers, or from "inside" the dream?
What you don't understand, you can make mean anything. - Chuck P.
Disclaimer and clarification: This member has been having brief intermittent spells of inattention. It looks as if he is daydreaming in place. During those distracting moments, he automatically generates fictional content, and asks about it in this forum for feedback. He has a lot of questions, and is a pain in the arse.