Thanks for all the great ideas! Not all of them are workable, but I've gotten much closer to the answer I wanted.
Since it sounds like you're a native Norwegian speaker, just think of how you personally would have referred to a place described as they describe the NN if you had appeared there in real-life with no prior knowledge of the Dresden Files. What would you have called it?
That's the problem: there's no good name for it. Or rather, there's too many names for it and those that are best generally have connotations I don't want to invoke. Also, my first instinct felt wrong to the players, so that won't work. (And yes, I'm a native speaker.) I like your idea about "the Dream" though,
Drømmeland (“Dreamland”) would fit. It's currently in my top three choices.
I'm currently wavering between these options:
Ginnungagap, (see:
http://en.wikipedia.org/wiki/Ginnungagap) even though I was trying to avoid something that was so
blatantly Norse. I mean: it is huge, it's "the chaos that everything originated from" and most of the mythological places are technically located within it. That seems to fit.
Drømmeland "Dreamland"
Eventyrland "Fairytale-land"
or just have everyone call it by different names and / or euphemisms, like
landet som ikke finnes "The land that isn't"
Landet på den andre siden "the Land on the Other Side" (another good idea, thank you),
I berget det blå "In the blue mountain" or
bak stjernene "behind the stars"