[philosph]
"I think therefore I am" is useful, but you also have to believe that everybody else also exists. Reality is not just about what you can observe, but the belief that there are things happening that you can't observe. Other people's thoughts, physics, trees falling in forests, and what not all will happen without you around, and will continue happening after you're gone.
A dream wouldn't do that. A simulation with you as the only entity wouldn't do that.
A 'matrix' or simulation where all entities are sentient would be, by all definitions, real. Or at least real enough to not matter.
[/phil]