Thank you very much medkev13. Your analysis makes much sense and you make it sound so simple that it makes me wonder how could I have missed it all this time.

So the problem is that I dwell on it too much in a sterile manner that leads nowhere, with no real insight and understanding about the situation that would help me go on with my life, and this predicament is symbolized in the dream by being around this woman without having any substantial and meaningful relation with her or a resolution that would clear things up.