This is exactly my interpretation. You are still dominated, but must receive verbal commands.
Plane Sailing said:The strange thing is, Hold Person has the descriptor Enchantment (Compulsion) (Mind affecting) as does Suggestion, Dominate Person, Dominate Monster, Confusion and Ottos Irresistable Dance (for example).
All of these spells magically compel some kind of behaviour. Is protection from evil supposed to negate the power of all these spells? I don't think so, it never has in the past.
The description suggests that the magic of dominate still affects you, but it blocks the mental commands that a vampire sends. Do you take this to its literal extension and say that it *only* blocks mental control, so anyone that is dominated by Dominate Person (say) and given a verbal command must obey that command because it is not a (blocked) mental command?