The playlist consists primarily of dreampop, shoegaze, and electronica. Looking for songs that are (subjectively of course) dreamy, ethereal, & transcendent. Some examples from my playlist:
Sometimes by My Bloody Valentine - around 1/4 of this playlist is MBV so far
Fotzepolitic by Cocteau Twins
Zebra by Beach House
Spooky Rhodes by Laika
Any suggestions for songs with this vibe?
Dream and Shoegaze aren’t subgenres I’ve developed a lot of interest in - I’m more into Bullet For My Valentine than My Bloody Valentine - but there are some songs I really do like.
Catherine Wheel “I Want To Touch You”
Elysian Fields “Bend Your Mind”
Eisley “Taking Control”
Dubstar “Stars”
Dinosaur Jr. “Feel The Pain”
Gravenhurst “Blue Beard”
As for electronica being on the dreamy side, I think you should listen to Zero 7 (try “Pop Art Blue” specifically) and Warpaint (“Billie Holiday”).
Lush – “Deluxe”
I immediately thought “Cocteau Twins” upon reading the thread title, but I see that’s already been taken. Lush was my next thought, but that’s also taken.
How about M83? Kind of like electronic shoegaze–definitely influenced by both MBV and CT. It somewhat depends on what kind of “dreamy” you want, but Unrecorded or perhaps Run Into Flowers should be up your alley.
Massive Attack Teardrop
Sigur Ros Svefn-g-englar
Plenty of Smashing Pumpkins would fit the bill, too.
You linked to and probably already know all the ones I’d mention right offhand. Besides Cocteau Twins, there’s This Mortal Coil, Delirium, Massive Attack, Portishead, and others. Are you familiar with Cranes? Alison Shaw has a very unusual, kinda little-girl voice, but if you like it, many (not all) of their songs might fit somewhere into your playlist. I can’t find most of my favorites, and songs I know would work for you, on YouTube, damn, but here are a few I like. Are they too far off the mark? At least it lets you know if you can handle her voice.
Cranes - “Adoration”
Cranes - “In The Night”
Cranes - “Everywhere”
Cranes - “Thursday”
How about Bel Canto? Many of their songs are way outside of your playlist (like this one, and this one, and this one, and this one, and this one, and this one, and this one) but some are close.
Hmm, now that I’m searching and listening, I can’t find the songs that I wanted to recommend. How frustrating. I’m going to have to do something about that, and Cranes, one of these days. This gets closest.
Bel Canto - “Picnic On The Moon”
Fitting the “dreamy, ethereal, & transcendent” criteria, though not with the vibe of your links, you might like these for another playlist another time: “The Chariot,”, “Winter,” “Temporary and Eternal,” “Summer,” “Ra Is A Busy God.”
For me, far and away the best shoegaze/dream band was Slowdive. Any of their early stuff is exemplary, but I love ‘She Calls’ and ‘Primal’. Their version of the old Lee Hazlewood/Nancy Sinatra song ‘Some Velvet Morning’ is very good too.
I’ll second M83, particularly ‘Lower Your Eyelids To Die With The Sun’ (great title) from Before The Dawn Heals Us.
In a gentler vein, Love Spirals Downwards are very good.
When I hear “dreamy, ethereal, & transcendent”
I think Radiohead, Sigur Ros. Some of the songs off of the Into the Wild soundtrack are pretty awesome as well by Eddie Vedder
Oh there’s this songas well that I love.
Another vote for Sigur Ros
Some Lemon Jelly tracks would fit your description but not all.
Whenever I see people asking for music recommendations I wonder why All Music is so apparently little known. You can start anywhere you like and find hundreds of bands to follow.
Check out the linked page. Everything is linked even Styles and Moods
It lists Similar Artists:
A.R. Kane
The Jesus and Mary Chain
Lush
Ride
Chapterhouse
Moose
Slowdive
Swervedriver
Ultra Vivid Scene
Medicine
Hüsker Dü
Loop
Dinosaur Jr.
The Flaming Lips
Pixies
The Primitives
Spacemen 3
Yo La Tengo
His Name Is Alive
Mercury Rev
Influences:
The Beach Boys
The Birthday Party
Cocteau Twins
The Cramps
Sonic Youth
The Velvet Underground
The Beatles
The Durutti Column
Hüsker Dü
The Kinks
Spacemen 3
Throbbing Gristle
Wire
Chrome
Burt Bacharach
Brian Eno
Pink Floyd
Jimi Hendrix
Followers:
Amp
Asobi Seksu
The Boo Radleys
Giant Drag
The Swirlies
The Raveonettes
Amnesia
Guitar
Serena Maneesh
Chapterhouse
Fennesz
Spirea X
Cranes
Autodrone
Garbage
Run Run Run
Manitoba
Pia Fraus
The Ecstasy of Saint Theresa
Sweet Trip
Damon and Naomi-The Mirror Phase
I would suggest The Faunts M4 (Part 1) and M4 (Part 2).
I would highly recommend
Tristeza - Dream Signals in Full Circles
The Album Leaf - One Day I’ll Be On Time
Lumen - The Man Felt An Iron Hand
The Mercury Program - All The Suits Began to Fall Off and A Data Learn the Language
These are all instrumental bands that have a psychadelic but mellow sound. Links are to Amazon.com with samples so you can check it out and see if anything strikes your fancy.
Hope you don’t mind if I inject some retro suggestions.
Jimi Hendrix Experience: May This Be Love
Pink Floyd: A Pillow of Winds
Beatles: Sun King
Brian Eno: By This River (Eno is the king of ethereal music)
Family: Bolero Babe
King Crimson: Book of Saturday
How about Shaun Cassidy’s cover of Da Doo Ron-ron? My sister always said he was dreamy.
The Verve’s first album, A Storm in Heaven. Some songs: Already There and Star Sail.
Weird, I could have sworn I posted a rather lengthy reply a couple days ago. I must have failed at clicking, oh well. Thanks for all the responses everyone, apologies if I can’t get to each one.
I actually toyed with putting “Dead Cities, Red Seas & Lost Ghosts” (the song, not the album) but decided it was a bit too long. “Run Into Flowers” is a good call, thats going on the list.
I’ve never liked MA as much as everyone else does. I dunno why. It certainly SEEMS like I should like it based on everything else I like, but it just never works for me.
Already on the list 
Weird, I have this listed as “Waterfall” in my library. Guess we have another Baba O’Reilly situation. Love the song, although not quite… fuzzy enough to qualify as “dreamy” for me.
I have whole other playlists devoted to Eno, one of my heroes. For this mix, if I were going to use an Eno tune I would go with Spider and I.
Loves me the 'horse, I was really sad when he decided to end it all. I put Junebug, Hey Joe(which I just learned was a Daniel Johnston cover), & It’s a Wonderful Life on the mix.
I like part 1. Is it on an album? I see part 2 on the Mass Effect soundtrack but not part 1.
My favorite D&N song, good call!
I’m all over allmusic.com. For these purposes, though, I find it a little broad. Husker Du and The Pixies aren’t really what I am looking for at all. Great site in general though. The list did remind me of Raveonettes, though, so I threw Hallucinations on there.
Ooh good call. Souvlaki (only album of theirs I have) has some great dreamy songs on it. I think I will go with Country Rain. I should pick up more of their stuff.
There’s some of Bill Frisell’s stuff that you might enjoy, like ‘Shenandoah’.
This fits your request perfectly. You will not be disappointed.
http://www.amazon.com/Untitled/dp/B000W1YYRC/ref=sr_shvl_album_4?ie=UTF8&qid=1299379676&sr=301-4