This popular representation bears little resemblance to actual hypnotism, of course. In fact, modern understanding of hypnosis contradicts this conception on several key points. Subjects in a hypnotic trance are not slaves to their "masters" -- they have absolute free will. And they're not really in a semi-sleep state -- they're actually hyper attentive."  (Retrieved from http://science.howstuffworks.com/hypnosis.htm on December 6, 2006). 

Researchers are doing some interesting work looking at the phenomenon of hypnosis in relation to neuroscience, cognition, and physiology.  I'm particularly interested in the use of self-hypnosis as an intervention to help college students manage stress.  Here are some references I've found useful:   

Benham, G., & Nash, M.R.  (2005).  The truth and the hype of hypnosis.  Scientific American Mind, 16(2), 46-53. 

Carrese, M. A.  (1998).  Managing stress for college success through self-hypnosis.  Journal of Humanistic Education & Development, 36(3), 134-142.

Raz, A., & Shapiro, T.  (2002).  Hypnosis and neuroscience.  Archives of General Psychiatry, 59(1), 85-90.