Only slight corrections to Version 1 - kelcountry3 did a great job. 
Also, added all choruses simply for ease of autoscroll.

Personally I play this on Capo4 and strum and pick closer to the neck.  I think it adds to the mellow tones. 


[Intro]
(Picking)
  
   
   
   

            
I had a dream 

             
about a burnin

     
g house

You were stuck

 inside
             
I couldn't get

      
 you out
            
I laid beside 

             
you and pulled

      
 you close
             
And the two of

            
 us went up in

  
 smoke


[Pre-Chorus]

           
Love isn't all

              
 that it seems

            
 I did you wro

ng
             
I'll stay here

            
 with you, unt

             
il this dream 

   
is gone


[Chorus]
          
I've been slee

pwalking
     
Been wandering

 all night
            
Trying to take

              
 what's lost a

                     
nd broken and
       
Make it right
          
I've been slee

pwalking

Too close to t

he fire
             
But it's the o

             
nly place that

              
 I can hold yo

  
u tight
            
In this burnin

    
g house


[Verse 2]
            
See you at a p

             
arty and you l

        
ook the same
        
I could take y

ou back
              
But people don

           
't ever change
            
Wish that we c

            
ould go back i

  
n time
             
And I'd be the

              
 one you thoug

            
ht you'd find


[Pre-Chorus]
           
Love isn't all

              
 that it seems

            
 I did you wro

ng
             
I'll stay here

            
 with you, unt

             
il this dream 

   
is gone


[Chorus]
          
I've been slee

pwalking
     
Been wandering

 all night
            
Trying to take

              
 what's lost a

                     
nd broken and
       
Make it right
          
I've been slee

pwalking

Too close to t

he fire
             
But it's the o

             
nly place that

              
 I can hold yo

  
u tight
            
In this burnin

    
g house


[Bridge]
             
The flames are

          
 getting bigge

r now
             
In this burnin

  
g house
 (  
I can hold on 

  
to you somehow
             
In this burnin

  
g house
         (
Oh when I don'

    
t want to wake

 
 up
             
In this burnin

  
g house


          
I've been slee

pwalking
     
Been wandering

 all night
            
Trying to take

              
 what's lost a

                     
nd broken and
       
Make it right
          
I've been slee

pwalking

Too close to t

he fire
             
But it's the o

             
nly place that

              
 I can hold yo

  
u tight
            
In this burnin

    
g house


[Outro]
Picking style