Recall Lynch's ten clues to interpreting the movie (listed in part 2 of the analysis) - we've already looked at clues nos. 1 and 2. Continuing with #3: Can you hear the title of the film that Adam Kesher is auditioning actresses for? Is it mentioned again?
In Diane's dream, when Adam Kesher (above left) is shown auditioning actresses (such as the Camilla Rhodes 'double' shown at above right), we hear him at one point announce, "Sylvia North Story, Camilla Rhodes take one." The point is that in this part of Diane's dream, Adam is auditioning actresses for his film, The Sylvia North Story.
The Sylvia North Story is mentioned again later in Mulholland Drive (but earlier chronologically) than the above scene, at the Mulholland Drive party, when Diane tells some guests at the party that she once auditioned for a movie of this name, but that Camilla got the role. In this scene, which takes place in reality, it is stated that Bob Brooker was the director of the movie.
The version of The Sylvia North Story to be directed by Adam, is actually Diane's dream-fantasized remake of the one directed by Brooker - it is to be a remake of Diane's own life story (where 'Sylvia (from the) North' = 'Selwyn from Canada'). In reality, some director whom Adam represents and with whom Diane is in love, is to make some movie that Diane hopes to be in, and Diane fears that Camilla will get the role in this movie, so she places the hit on Camilla.
Clue #4: An accident is a terrible event - notice the location of the accident.
Rita walks off into the woods after the accident on Mulholland Drive.
This clue is designed to get us to realize that the accident occurred on the same road (Mulholland), as that on which Diane was being driven to the party at Adam's place. Then, as indicated in part 12, the 'dream-trauma' of the accident represents the trauma Diane experienced at the party, with both events representing an alchemical nigredo for Diane.
