It's very hard to say just what was going on with "The Lady from Shanghai" and what the film could have been without studio interference. Orson Welles' prime interest in film at this point was to raise money for his theater; indeed, funding his own projects is what drove him to seek out acting jobs. He made "Lady from Shanghai" for his soon to be ex-wife, Rita Hayworth. Harry Cohn was fearful for Rita's image and held back the release of this movie for one year.
The plot concerns an Irish sailor, Michael O'Hara, who falls in love with Else (Hayworth, stunning with short blond hair). Her husband is a well known criminal attorney Arthur Bannister (Everett Sloane) who is as crippled on the inside as he is out. He hires O'Hara to work on his yacht, and there O'Hara is drawn deeper and deeper into a web of murder and deceit.
"The Lady from Shanghai" moves at a snail's pace, though I agree with one of the posters that films today are criticized for taking time to build a plot. Still, this movie drags. The scene in the fun house is fantastic - Welles wanted it without music, though, and I believe the studio cut it down. It's a shame. The photography throughout is stunning, atmospheric, bold, and very stylish.
Welles was an excellent actor, handsome in his youth, charismatic and possessing a magnificent voice and technique, but in many films, it's almost as if he doesn't trust himself or doesn't take the time to develop a character. Instead he relies on externals such as accents and fake noses. One of the only times he didn't do this was "Tomorrow is Forever," where the director gets an excellent, deeply felt performance out of him. Contrast that with "Compulsion" where he shows he is a master of pure technical acting as he phones in his performance. Here Welles is doing quadruple duty - as director, star, co-writer and narrator. Sporting a completely unnecessary accent and looking intense was a fast way to a characterization. Nevertheless, he is always compelling.
The supporting players are excellent, including Sloan and Glenn Anders. Hayworth, gorgeous and soft-voiced (her singing was again dubbed by Anita Ellis) is as usual a complete goddess and one of the great screen presences. What a sad life for such a vibrant beauty.
Any film that Orson Welles directed is worth seeing, and "The Lady from Shanghai" is no exception. But this one leaves the viewer frustrated, as does "The Magnificent Ambersons" - as does any work that Welles did within the studio system. He was a great artist who should have been given a freer reign; he wasn't. He was a strange dichotomy - he needed more freedom, but as is evidenced by some of his later work, he needed the structure of the studio. Alas, he couldn't have both.

No movie with Madeleine Carroll in its cast could possibly be unwatchable. That said, I have to add that this British film comes close. The story takes place on board the `SS Atlantic' and it's loosely based on the `Titanic's' unfinished voyage. The word `unsinkable' is spoken, the liner strikes an iceberg, and we hear a heavenly choir sing `Nearer My God to Thee.' The doomed passengers eventually take over the anthem, in a clever bit of sound work. But the year of the film's release (1929) means that a modern viewer has to accept otherwise primitive sound and many of the acting conventions of silent films and the stage. These aren't problems. The film's major flaw is pacing, and pacing had been well developed in silents. However, if the dialog were delivered at a realistic speed, the movie's running time would be cut in half. The intended effect was drama (and clarity in a new medium), but the result unhappily is tiresome now. The film's structure is preposterously illogical and inept. Paradoxically, I found certain details of the editing quite modern in technique: fine, abrupt cuts from one area of the ship to another, sometimes even on sound effects. Although we're on board the `Atlantic' from the first shot, we were well over 4 minutes into the movie before I discovered that fact. There are long, intrusive musical passages by the ship's dance orchestra. (Entertaining, easy sound.) Personal stories are presented in an utterly uninvolving and unconvincing way. Don't even think of spectacle. The berg is a tiny thing and the exterior damage it does to the ship's hull is a minor dent. However, the scenes of passengers swarming into the lifeboats - clearly staged on a real liner, presumably tied up to a dock - generate great excitement. Other than the glorious Miss Carroll, these sequences are the film's only points of excellence. As the movie and the ship near their end, the screen goes totally black several times when the power generators begin to fail. Their last, eternal blackout is the end of the film, with a sunset/sunrise tacked on, a clumsy symbolic effect. `Atlantic' is a cinema curiosity. At best.