That is the most stunning episode of television I have ever seen and it puts most movies I've seen to shame, too.
The 1950s girl's gotta be Sarah Palmer, right?
The show's been channeling his thematic trilogy of Lost Highway, Mulholland Drive, and Inland Empire til this point, but tonight's episode was all Eraserhead.
EDIT: Looks like the Woodsmen are most definitely evil, although maybe the super-fake look of Jurgen Prochnow's beard in FWWM means he was spying on the meeting like Philip Jeffries was?
The woman who appears with the Giant is named as "Senorita Dido" in the credits. There is an actress named Erica Eynon credited as playing the "Experiment," which is apparently the gray alien being we see in this episode birthing BOB (!!!!!) and which was the same being in the glass box from the first episode. Wonder what we're supposed to infer from it being an experiment? Also, is it the "mother" that was after the woman Dale Cooper encountered in that weird limbo space in episode 3?
I think this episode also gave us a look at the exterior and origin of the convenience store where the meeting was held in FWWM. When the Woodsmen are repairing it it only has one floor, but when we see it again in 1956 it has at least two stories, if it is indeed the same place. (EDIT: Actually, looking back over the episode, the buildings look pretty different. But the first convenience store/gas station might still be the place from FWWM. "Convenience Store" are the only two words we see on the building, seems deliberate. And it's obviously important to the Woodsmen, possibly other demonic beings as well.)
And shit, those Woodsmen look a lot like the homeless man from Mulholland Drive, don't they?