Text (MI+errata): 1/1. ; Whenever ~this~ blocks or becomes blocked by a creature, ~this~ and that creature phase out. [Oracle 1999/07/01]
Affects all creatures that end up blocking it, including ones that are members of bands. [bethmo 1996/09/17]
If Dream Fighter is assigned to block a creature with Flanking, the Flanking ability and the Dream Fighter ability both trigger. The active player's Flanking effect is put on the stack first and resolves after the Dream Fighter's phasing out effect happen, so the Flanking does nothing. [D'Angelo 1999/07/10]