Unpacking Mulholland Drive: External Narrative
On the surface, Mulholland Drive presents the audience with Diane Selwyn, an aspiring actress from Deep River in Ontario, Canada. When Diane's aunt, also an actress, passes away, she leaves her some money. Diane had always dreamed of becoming an actress, and after participating and subsequently winning in the Jitterbug dance contest, she was able to pursue her dream.
I believe it is important to understand that Hollywood represents the place of hopes and dreams, which are manifesting through film. Films create an illusion; and subsequently much of the film can be explained as an illusion of Diane's mind. In order to understand why the audience sees what they see, it is important to differentiate Diane's reality from her dream world.
Reality:
As Diane arrives to Hollywood, she is seen with Irene and Irene's companion (old couple). They are both also seen at the Jitterbug contest. Some time later, Diane meets with Camilla Rhodes, who won the important role over Diane. Camilla and Diane become lovers, but eventually Camilla decides she wants to pursue a relationship with Adam Kesher, a director who casts her in roles. Diane has a difficult time with her break-up from Camilla.
Camilla invites Diane to a party on Mulholland Drive, which serves as a critical juncture for her descent into madness. At the party, she meets Coco Lenoix, Adam's mother, who appears to understand what Diane is going through. At the party, Diane is traumatized, as she sees Camilla's complete indifference to her heartache. The events that occur at the party create a subconscious imprint in Diane's mind, which later explain the various characters we see again in the film. Diane first sees Camilla kiss a woman, then she sees a man in a cowboy hat, as well as a man staring at her as she drinks an espresso. When Adam Kesher announces that he and Camilla will be getting married, Diane sees this as the death knell to her heart and relationship with Camilla.
After the party, we see Camilla attempt to continue or reconcile her friendship with Diane, but Diane angrily dismisses her. We then see her hire Joe to kill Camilla. During their meeting, she is under stress, and once again, everything she sees at the cafe creates an imprint in her mind later manifesting in one form or another in her dream. She imprints the name of the waitress, Betty; Joe's black book; the words, "this girl;" the bag of money; and the blue key, indicating that the hit was successful. Additionally, she sees an unknown man at the counter, who is later revealed to be Dan when we see him later. Diane asks Joe what the key opens, but Joe is seen laughing, because the key, a symbol of death and emptiness, opens nothing.
The next few days occur off-screen, during which time we see the blue key in Diane's apartment, indicating that the hit was successful. Diane is visited by the police, and is shown to be in a state of deep depression, going to sleep on the red pillow which the audience sees, beginning the dream sequence.
The movie then unfolds as a manifestation of Diane's dream, with the various characters which Diane saw as she was under stress.