Koschay: I thought it was a remarkably mundane dream reflecting Iorveth's world-weariness a desire to just quit fighting and settle down. He's got his pipe, his drink and his roast pig, so he's sitting down quoting some obscure elvish ditty.
I'd be disappointed if it turned out to be something profound.
This was exactly my interpretation. Makes sense to me a man who has lived for at least a century as a partisan, always fighting and almost starving would dream of a tasty feast and security. It's not that he would throw his ideals away for comfort, but it seeps into the subconscious because it's, well a basic need for lifeforms. Nourishment, warmth, and safety. He doesn't get any of those. :P
I totally believe that Russian translation by the way. It does sound like he is listing items if you listen to the way he speaks.
As for the Saskia thing... not only do I not interpret any romance between the two, but neither do I see any romantic imagery in that dream. If it was a lovelorn dream, I don't think they would use imagery of a small, closed room, focusing the camera mainly on a big feast and roast pig. Lovelorn imagery is more like being alone by a window, or out in the open in nature, playing his pipe in the evening... etc. :P