I think most people are wrong about the plot...

Rating: Null/10 (8 November 2001)

WARNING - SPOILERS AHEAD
Ok, first off, this is a great movie. Best I've seen in years, and it kept me and my girlfriend thinking about it for days.
Alot of people seem to think that the first part of the movie is dream, by Diane. I think that this is wrong. Yes, it is a dream of sorts, but not by Diane, but rather Rita(Camilla).
The movie is a mixture of both dream and reality, beginning with a very real sequence of Camilla being involved in a car accident, that luckily for her foils an attempt on her life by hitmen paid by Diane, her scorned former lover. Dazed, and with no recollection of who she is, she wanders down into town, eventually making her way into a house. As this unfolds, Lynch gradually sets up the principal characters in the film using clever, disjointed scenes. Some of it is wonderful and haunting imagery, depicting the evils of Hollywood. At this point, we then enter Camilla's illusionary state, as she is struggling to remember who she is. The Diane that she encounters in her mind, is likely what she envisioned Diane to be, before the ravages of the pain and disappointment that inevitably lead to her(Diane's) demise. It is a pretty, charming, and wholesome image, which leads me to believe that Camilla felt some guilt for spurning Diane's love. The imagined Diane then leads her through various sequences, each allowing "Rita" to further realize her true identity. Slowly, Diane's image in Camilla's mind begins to become less wholesome(i.e, Diane leads the break-in to the real Diane's house, and discovering Diane's dead body). Finally, "Rita" comes to realize her true identity, and "poof", Diane is gone. (the "box", that is unlocked by the key is purely symbolic of that, and btw, notice that the key in the dream is not actually the same key that the hitman gives Diane, I think that this might cause some viewers their confusion). It is here that the film changes dramatically, basically to past events involving Camilla and Diane, that lead to Diane hiring a hitman to kill Camilla, and to killing herself because of the guilt.
I am sure this movie will be debated for years to come. I have already debated it with many friends who saw it. The one striking thing, that stood out, as proving that the dream-like sequences were those of Camilla, was that if it was indeed Diane dreaming, that she would have seen Camilla as Camillia on the stage, rather than "the girl", during the casting of the movie by Adam. Of course the other part was the more obvious one, that when the dream was over, Diane vanished from the room.