Are you listening?

So lately Nathan has had a really hard time listening.  It isn't him being naughty, his imagination has just gotten the better of him.  He is never here in reality.  Two days ago at lunch his feet began talking to each other.  One was Yoda and the other was Ariel (little mermaid).  They were having quite the conversation at one point Ariel told Yoda to, "Get down from there!"  Anyway, this extreme imagination has been causing problems at preschool and swim school.  Once again the teachers tell me he is having trouble listening.   I am harnessing all my teacher knowledge and we are working on this at home.  I can't really ask him to stop using his imagination, but I will only ask him to do something once before a time-out.  I thought 3 year olds were suppose to be concrete thinkers... I blame Little Bear.