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story Story inside story?

I'm writing a script and most of it entails a guy telling a story and the images being of that story played out. Is there any scripts or examples online that have this properally formatted? Do you do the usually scene headings and tell what's happening while inserting dialogue as a o.s or voice over?
 
Is it a flashback? Dream sequence? Character fantasy?

If so, you need to include that in the heading. In fact, anytime the action moves to a different location you need scene headings.

As for the voice over it's, well, a voice over. Dialogue will be represented as such too.
 
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