Brainstorm: A team of scientists invents "the Hat", a brain/computer interface that allows sensations to be recorded from a person's brain and converted to tape so that others can experience them.
In response to your parent, there's also the movie by Wim Wenders "Until the end of the world"
Where IIRC a scientist creates a device that can record dreams and his wife becomes totally addicted to the experience and just can't stop playing and re-playing her dreams.
I think it's in Until the end of the world but cannot swear it ; )
Good movie anyway...
And then there's the movie which is a reflection on immersive videogame as the main plot: David Cronenberg's Existenz. Existenz is considered a flop by many, but an underrated movie by quite some people too.
http://en.wikipedia.org/wiki/Brainstorm_(1983_film)