That depends on what print you're watching.
In the version available on Image Entertainment's DVD:
We see shots of Glen (dressed as Glenda) alternating with those of Barbara. Glenda's hand gestures indicate that she wants Barbara to draw nearer. Barbara is in mental agony, which she indicates by holding her head in her hands and then dropping to the floor and slapping it with her palms. Glenda leaves the frame and the picture goes black.
An effect, that's partly an iris out and partly a wipe, reveals Barbara struggling underneath something that looks like a tree. Glenda tries to pull it off her, but then she disappears, leaving Barbara to struggle alone. Glen appears and manages to pull off the tree and save her.
We dissolve to a preacher. Barbara and Glen enter from behind the camera, facing the preacher and away from us, the audience. The preacher opens his book and then looks to his left. Satan appears. The preacher reaches toward Satan who gives him a ring. (Presumably, that is. Glen is obscuring the view.) The ceremony continues as Satan nods approvingly. Glen and Barbara kiss and walk toward the camera.
We dissolve to Bela Lugosi. "Tell me, tell me, dragon! Do you eat little boys? Puppy dog tails and big, fat snails?"
We dissolve to a close-up of Glen, lit from underneath, as smoke rises from behind him. He looks up at us, shaking violently. A child's voice says, "Puppy dog tails! Puppy dog tails! Puppy dog tails! Everything nice. Everything nice. Ha, ha, ha! Puppy dog tails!"
We abruptly cut to Bela Lugosi, and the quality of the print is suddenly much worse. We alternate between shots of him, looking disgusted and outraged, shots of Glen looking frightened, and shots of women employed in various sado-masochistic activities. Both Glen and Bela seem to be reacting to the women.
The vignettes: A half-dressed woman is whipped by a shirtless man. A woman stands at a pole, inviting some unseen person to come closer, as her dress nearly falls off. A woman in a flower-print dress seems bothered by it, so naturally she rips it off. A woman performs a semi-dance routine as she slowly lifts up her dress to reveal her underwear. A woman with her mouth gagged frees another gagged woman whose hands are tied to a bamboo pole that's set across her shoulders. A woman writhes on her couch, inexplicably in ecstasy. A second woman sneaks up and ties her hands together and then gags her. A brunette sits at her vanity combing her hair. Later, she's nearly nude on her couch as she writhes around on it. A man with a pointed beard appears and rapes her. The vignettes end with a shot of Lugosi giving an expression of amused resignation.
Then we're back to the dream sequence. We see Glen in his house, only the furniture has been turned upside down and the fireplace is tilted, to give the place an air of surreality. A sinister voice (not Bela Lugosi's) says, "Big green dragons and big fat snails. Beware! Take care!"
"I'm a girl!" says the smug little child's voice. Then, "I'm not! You're a boy! A puppy dog tail! Ha! Ha! Ha!"
A man with a pitying expression appears out of thin air. (Note the door he stands in front of. There's a tilted picture frame hung on it. Surreal, eh?) Glen reacts with fright. Then he sees the ghostly image of a woman looking angry. "Everything nice!" says the disembodied girl-voice. "Puppy dog tails, puppy dog tails, puppy dog tails!"
A man and a woman, both looking censorious, fade into the scene, as they stand in front of a chalk board. An older woman, equally disapproving, pops in behind them.
The girl repeats her nursery rhyme phrases as others, including Glen's sister, appear. They all point to him and surround him, lead on by Satan. When they disburse, we see that Glen is now Glenda again. He, as she, is now happy. The music is sweepingly romantic. Barbara walks in and gestures for Glenda to come near. She does, but then changes to Satan. Barbara reappears on a tipped-over love seat, and her outfits change supernaturally. She beckons Glenda again, and then laughs in Glenda's face. A sad Glenda's mental state is represented by the superimposed image of several hands with wiggling fingers. The various people reappear and laugh as they wiggle their fingers menacingly.
Satan is pleased by all this. Then the male voice says, "Beware! Beware! Beware of the big green dragon that sits on your doorstep. He eats little boys. Puppy dog tails and big fat snails. Beware, take care! Beware." The delighted expression leaves Satan's face. The Prince of Darkness looks inexplicably frightened.
The dream ends with Glenda falling down and upsetting the tipped-over love seat. After the dream, we see Glenda, reflected in a vanity mirror, entering a room.