“Dead sleeping, sleeping dead. Is it real, or in my head?â€? the Avatar replied.

I really like how you worked this line again. Very good stuff, I’m looking forward to more.

Very nice. It really feels like you have a purpose here. This story seems like it’s actually going somewhere, and this was well told. I agree with That Guy, the Avatar is a very interesting character, I enjoy the way he talks in riddles.
You missed the word “the” in paragraph 6 & 7, but that’s a very, very small nitpick.

@John, one of the missing “the”s was intentional & I don’t have enough chars left for the other… oh well. :)
I really appreciate and look forward to your input. You have forced me to “up my game” in writing these stories.

Wow, that was intense and creepy. Awesomeness.