I like #1 as well. To me dreamy means soft, magical, almost fantasy-like (if that is any better description).
Arghh I don't have PS. I have Paintshop Pro X6, but rarely use it bc it's complicated compared to LR and it runs kinda slow on my desktop.
Glad you like my edit!
If you want soft and fantasy, shoot wide open to get max separation and melt the background. Perhaps wide open with your 28mm for some slight distortion.
As far as post, you can do quite a bit with LR, but you may need to consider your background. Shooting with strobe can also give you a surreal look when done correctly.