Do you feel the world is an illusion?

Most everything you see and feel are made up of nothing but empty vacuum of space. Even at the atomic level its still mostly nothing the atom isn't as solid as they taught us in school. Than at the sub atomic level its still nothing but empty space with particles that seem to phase out of existence. If this is all there is to our existence than I guess we are nothing more than figments of someones dream. Every religion in the world teaches that this reality isn't as concrete or absolute as what we think it is and might only be nothing more than a test or learning phase into our real existence. Maybe what mattes most isn't what we see and feel but how we as an observer of life let it effect us.

If it is all an illusion, why does everything follow such strict physical laws of the universe?? If I'm just going to dream, maybe I'll fly like a real bird. Be careful. If you step off the top of a building, you will fall regardless of what your illusion might be!

You must be referring to the concept of Maya in Hinduism and similar in Buddhism. As far as I know, it is the great Yogi Adi Sankara because of whom this definition came into being. Organizations following his school of thought do not consider the universe and our life therein real, but an illusory experience. Sankara, although a mystic of a real high order received a fair deal of flak from the latter day Yogis for this. Some blame him, some his ignorant disciples, some our own understanding of his concepts and some blame his Guru Gaudepada for wrongly translating the Yogic experience at that level. Sankara is also said to have some Buddhist influence on him because of Gaudepada. If one refers to modern day Yogic giants like Sri Ramanna Maharishi or Sri Aurobindo, according to them the world, although not an apt representation of reality or Brahman, is pretty much real and a shoddy, misleading manifestation of the divine. Maya in the sense of the Sankara'ite sense would mean illusion and otherwise it is known as 'ignorance'. Personally, I agree with both the sides to a certain degree. It is we who have let ourselves get entangled in this cycle of Maya. (Ignorance) However, it is true that this makes it appear as if life is undesired and Nirvana through Yoga is an escapist flight from the world. I'm not at all fed up with my glorious life.