What is the strick translation of "Pienso que tiene suenos dulces". I am translating it as "I think of having sweet dreams"
I'm only guessing at this; but, it seems to me that it means: "I think that you (formal Ud.)/he/she/it have/has sweet dreams"'.
I figured the context was from this book: link text Fundamental Spanish by Barbara Bregstein when I wrote my reply. I wonder if I was wrong.
I'm not positive but I think that you can't use literal translation with this one. I'm pretty sure that it translates to "I wish you sweet dreams" In English we would just say "sweet dreams!" In Spanish we say dreams that are sweet (sueños dulces)
I get it. I didn't give you all the context. The sentence prior to this one was. "Ella descansa completamente." Now I understand. I looked at it as he talking about himself. After reading your strict interpretation of the sentence. I see the relationship.
"I think that she/he is having sweet dreams" Has/ is having same thing here. Just my take.
Edit: I would usually say "dulces sueños" instead of "sueños dulces"...