to where the woman sits alone/ beside a silent telephone
The descriptions listed in stanza three are ones from the closing scenes of the film; they are all moments that signal loss, which suggests the ending is unhappy: "the woman sits alone" might tell us she has been abandoned by or has left her lover; "beside a silent telephone" implies that she is waiting for something to happen, willing it to ring.
the dress lies ruined on the grass
The final two lines of stanza three are more bleak: the ruined dress portrays a besmirched Garden of Eden. The "ruined" dress conveys a sense of soiled purity; while "grass" could evoke the Edenic world before the fall.
the girl walks off the overpass
This next line carries the implication of suicide. As we are still in Hollywood, it is uncertain whether she is killing herself or stepping into another time or another world – anything is possible.
and all things flow out from that source
Stanza four begins with lines which might recall the words: ‘All the rivers run into the sea’ from Ecclesiastes 1:7 about life and death. Each of us travels on our own "fatal watercourse". The double meaning is clear:
The idea of a watercourse suggests a river down which water (or rain) flows along an existing route. This again suggests the idea of following a line of fate.
The film version of life, however, can "do no wrong". This refers to the idea of sin once again. It suggests that in the make-believe world of the movies, we can still remain faultless; we can rewind to the opening unblemished scenes. But in reality, we can never be like this – we can never go back.