Here's the real deal with that movie. It was supposed to be a serial television series. ABC (IIRC) bought the pilot, then decided not to turn it into a series. David Lynch tried to get on a cable network, but to no avail. He finally convinced a French/Canadian company to bankroll turning the initial footage into a feature film. That's why the movie really doesn't make all that much sense.
I have a feeling that with the success of 24 and Lost, David Lynch was (again) a little too ahead of his time.
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