this has been discussed sooo many times, I.M.O.  I think it is the page from laura's diary,  remember the scene with laura & harold in tp fire walk with me when laura was complaining about the pages being ripped out & she told harold to keep her diary?

As for whether The Arm is good or evil, I think he's a little of both. Basically, I think he's torn (no pun intended) between Mike and Bob. On one hand, he used to be a part of Mike, who is now (although I've seen some who disagree) fighting for good, and Mike still holds some power over The Arm. On the other hand, Mike took off the arm because it was used for killing when he was Bob's partner, and a part of The Arm still has some connection to Bob and the need to kill.

So I think at different times, the little man is acting more or less on behalf of either Mike or Bob. Sometimes he gives Coop important, helpful clues; other times, he's much more ambiguous and maybe more on Bob's side. One of the most fascinating moments in FWWM for me is when Laura is being killed and we see a quick flash of the little man, sporting a violently ravenous look on his face. It's obviously related to Garmonbozia, yet it's still unclear whose side he's on at that moment.

Good, or evil, sides, these ideas are irreverent.  The LMFAP gives clues to help, whether through a dream or vision, his main goal is to aquire more souls for the lodge and send out demons for more. He could be a collector for the lodge. The giant, old server dude, and the loglady's log are dwellers of the lodge, not considered so bad, but give clues to Cooper's path to lodge. Earl does phyiscally lead Coop to the ring of trees, but what lead Earl? We Know.  Also...    

If I were in that lodge with Cooper and Laura I might consider floating around a bit, maybe check'n out the ceilings. 
 

I didn't read all the posts here, so pardon me if I repeat something.

 I've always thought the object was the bird in the cabin.

And maybe this is been discussed, but I'd thought I'd bring it up. One day while watching FWWM I made a connection. When Red Room Laura snaps her fingers and points down, its the same gesture she does in the Pink Room to Buck asking him to give her oral sex.  

Everything in Cooper's dream was just simply a clue to help him track down BOB so that the LMFAP and Mike could get their share of the Garmonbozia that BOB had kept to himself. The shadow is that of a bird to make sure that Cooper knows he is on the right track when they find Waldo. When the LMFAP says that the beautiful woman is his cousin, he's only trying to get the word cousin into Cooper's head so that Maddy won't go by without some attention. He doesn't literally mean that she's his cousin.

Just like "let's rock" shows him that it's connected to the Teresa Banks case when Cooper found the words written across Agent Desmond's car.

And the way "that gum you like is going to come back in style" is repeated near the end.

All just pieces of the puzzle. Afterall, the LMFAP and Mike (technically the same person in the real world) would really like their Garmonbozia back.

Everything in Cooper's dream was just simply a clue to help him track down BOB so that the LMFAP and Mike could get their share of the Garmonbozia that BOB had kept to himself. The shadow is that of a bird to make sure that Cooper knows he is on the right track when they find Waldo. When the LMFAP says that the beautiful woman is his cousin, he's only trying to get the word cousin into Cooper's head so that Maddy won't go by without some attention. He doesn't literally mean that she's his cousin.

Just like "let's rock" shows him that it's connected to the Teresa Banks case when Cooper found the words written across Agent Desmond's car.

And the way "that gum you like is going to come back in style" is repeated near the end.

All just pieces of the puzzle. Afterall, the LMFAP and Mike (technically the same person in the real world) would really like their Garmonbozia back.

I know that no one is 100% sure its a bird flying by at all.

Ok, follow me on this one.

The little man says; "I am the arm," implying that he is Mike's arm that he cut off. His arm could represent his next of kin, some sort of asexual reproduction. Mike and Bob were like brothers. Bob inhabits Leland. Laura is Leland's daughter. Therefore in some strange way Bob is Laura's father, Mike is her uncle and the arm is her cousin.

Ta Da!

Not sure when this got bumped up (it's still a bird, people) but Melissa is so right about the cousin thing!  Yay!  That always bothered me, and now I get it.  Thanks!  

I really like Melissa's explanation as well.  Thanks Melissa!

I'd like to throw in my 2 cents.

 I think the LMFAP saying "she's my cousin", is somehow related to Gordan Cole calling Lil (who is a DANCING girl in a RED dress) "my mother's, sister's, girl"......meaning cousin.

The bird shadow or whatever it is in the original red room sequence is there because it looks really cool.  Who knows what spirits are in that place?

Ok, follow me on this one.

The little man says; "I am the arm," implying that he is Mike's arm that he cut off. His arm could represent his next of kin, some sort of asexual reproduction. Mike and Bob were like brothers. Bob inhabits Leland. Laura is Leland's daughter. Therefore in some strange way Bob is Laura's father, Mike is her uncle and the arm is her cousin.

Ta Da!

I just thought of that just now!
Also, I think that it is definitely a reference to Maddy, since everything in Twin Peaks has a twin or cousin, why not accept two explainations.

I always imagined that the thing floating across was a flying sting ray. I don't know why.

What's going on in this thread? First post and last post are dated to 2008 but all the others are dated 2006 (and indeed seem to be from a few years ago). So confused...

Has it been merged?

Well, it's very interesting anyhow.

I always thought that the finger thing was Lauras way of saying "follow your nose" or something. Like telling Coop to go by his instincts. I also think it has to do with drugs...

 Re-reading Jospeh Conrad's Heart of Darkness, which I have always loved because of it's reverence for the wilderness and the mysterious dark force in/of them, I caught this gesture:

"I slapped him on the back and shouted, 'We shall have rivets!' He scrambled to his feet exclaiming 'No! Rivets!' as though he couldn't believe his ears. 

Then in a low voice, 'You . . . eh?' I don't know why we behaved like lunatics. 

I put my finger to the side of my nose and nodded mysteriously. '

Good for you!' he cried, snapped his fingers above his head, lifting one foot. I tried a jig. 

We capered on the iron deck. A frightful clatter came out of that hulk, and the virgin forest on the other bank of the creek sent it back in a thundering roll upon the sleeping station. 

It must have made some of the pilgrims sit up in their hovels. 

A dark figure obscured the lighted doorway of the manager's hut, vanished, then, a second or so after, the doorway itself vanished too."

So many surreal moments (you never fund out who the dark figure is, btw) in that story, all the creeping madness...

Anyhow, here the signal seems to mean "I have the solution" or "I've got it taken care of." He never has to elaborate to the other man.

Nice! I've read the book, but I never made the connection.

It doesn't really bring me any closer to understanding anything, though.

I thought the thing flying across the red curtains was an owl.

I always thought the shadowy flying thing was an owl too...because you see it as a silouette, meaning it is on the outside of the lodge.

As for Laura touching her nose then pointing to Coop - my thought the first time I saw it was that she's saying, "I know you...."