Dramo Worlmoro is an RPG set within the mind, where players assume the role of anthropomorphic creatures that reside there. Whatever a person experiences, those experiences are manifested in this mind-scape.
((The mechanics rough draft can be found in the attached file, which is a Word document.))
Joe
One player assumes the role of Joe, game master and storyteller. Joe is a giant tin can robot that keeps all things in balance. Joe can also breathe fire, and sometimes uses it as a neat party trick. His siblings Ego and Id are troublemakers, so Joe makes creatures called guardians and sends them out to clean up his siblings' messes. However, the guardians have minds of their own, and Joe often has a difficult time controlling them or keeping them focused. The other players assume the role of the guardians.
Guardians
The Guardians are automatons made by Joe, but they are not all robots like him; they can be all kinds of things. Joe makes the Guardians out of this stuff called, well..."Stuff", and he gives them different parts which grant them peculiar abilities. In the Create-a-Guardian section, you get to choose your parts, which range everywhere from having bat wings, to being made of bones or plants, to breathing out fresh minty air...or corrosive acid. Corrosive acid is always fun.
Joe will send your Guardians out on missions and offer incentives for completing those missions and bonuses for meeting certain conditions. These rewards are important because they improve your abilities or grant you new ones. However, completing missions for Joe is not the only way to build up your Guardian. Some items can do this (defeated bosses often have good items like this). Guardians can also seek out the Wishing Chicken. If your Guardian happens to get "Unstuffed", then it will re-stuff in Joe's realm. Guardians can do this a finite number of times before Joe gets fed up and disassembles them for good. If a Guardian is clever enough, however, he can elude, persuade, beat up (not likely), or trick Joe in order to prevent their de-stuffing.
Guardians may also do missions for Ego or Id at their discretion, although Joe won't like that should he find out. Joe especially won't like it should you happen to change your alignment to Ego or Id. They will re-assemble you so that you will re-stuff back in their realm. (The player that takes the role of Joe also takes the role of Ego and Id.)
The Three Siblings
Although none of them can actually die from any occurrence inside the mind-scape, their power is in constant flux. And more power means better parties and well-stuffed babes. When one gains power, the others lose power. Inside dynamics and outside experiences affect the distribution of power. For example, when the outside Person is scared, Scare monsters (or Scares) from Id's realm multiply and wreak havoc. If the Person has low self-esteem and experiences success, Joe's realm will grow in power. When a realm grows substantially in power, the outside Person will also be affected greatly and tend to do things in accordance with that realm.
Id
Id changes his mind, and his form, often. He (or she, depending on the mood)is erratic, whimsical, destructive, and doesn't think things through. He typically has more raw power at his disposal, however. Monsters and Bosses tend to gravitate towards his realm. Id has a brilliant adviser, but Id always manages to botch those plans, or instead sends the adviser out on stupid or pointless missions. Id is a magnificent artist, and tends to sport very eccentric fashions.
Ego
Ego likes a lot of power and loves to look his best. Although Ego is calculating and effective, he often deludes himself into thinking his abilities are greater than they actually are. His adviser, like Id's, is also brilliant, but Ego typically ignores her ideas or lays claim to them. She can't stand his constant womanizing, but the pay and benefits are good.
Miniatures!
If I ever design this into a fully functioning RPG, I'll make Play-Do miniatures to illustrate the combat rules (I'll draw all the damned artwork myself to save money). And maybe a box of parts that you can piece together to make your own Guardian miniature. For example, a torso will have tiny holes for snapping in arms, legs and wings; a head having slots for horns and big teeth and such. Weapons will fit neatly in the hands and armor pieces will fit over the body areas. Kind of like Legos, actually; 4-5 inches tall. Piece together your Guardian, and character creation is practically done.

I am sold
This is really refreshing. I have seen a lot of stuff not worth commenting on, but this is brilliant. Your idea deserves to be finished and polished, I love it.
http://www.1km1kt.net/Aaron-White.htm