Three Stars for book
Five Stars for his theory concerning "Lost Highway"
Stand forewarned! Are you familiar with Lacanian psychoanalysis? If not, then what you are going to get out of this tome will be limited. Unfortunately, I think Zizek's exegesis of Lynch's film is one of the best and most interesting- so you may have to study up to get anything out of this...
For instance, Zizek talks frequently about The Real, The Imaginary, The Symbolic, The Fantasy, Transversing the Fantasy, Perversion, The Name of the Father, etc. If you don't know what these terms are, you will not be able to just "figure it out" on the fly, because even "pervert" and "fantasy" are being used in technical ways which are different from their popular uses. For instance, a "pervert" is not someone who is horny all the time (though they may be, but that's beside the point), they are people who went through the stage of "alientation" but did not fully complete "seperation," and therefore have to supplement their lack of a fully completed "symbolic castration" by a bolstered "Imaginary." When this Imaginary loses its cohesion and begins to fail, the subject resorts to other strategies such as fetishism, masochism, or sadism.
The point here is this is really a book for Lacanians, and not for people who are just interested in Lynch. If you are the latter, you will probably just going to get disgusted and frustrated because Zizek is assuming a basic knowledege in this field. That being said, Zizek is still one of the most entertaining and popular writers of Non-Essentialist Hegelian Lacanian Post-Marxism, and I found this book typical of his output.
To use a warfare simile (I am an American, after all), I would suggest that Zizek is less like a surgical strike, and more like a cluster bomb. In this book, which is forty odd pages, he only really writes about Lynch and the movie for a handful, talking about all kinds of other stuff as well, such as cyberspace, mexican soap operas, Spielberg, film Noir, Stalinism, Ideology, Totalitarianism. Zizek has mastered the art of the interesting digression like no other, except for perhaps Trstram Shandy from the Laurence Sterne novel. If you are familiar with Zizek, then you know the routine and probably love it- but for others wanting a clear and focused account of Lost Highway will be frustrated.
For a easier account of the same theory, watch the Zizek film The Pervert's Guide to Cinema where Zizek talks at length about Lynch and Lost Highway and gives an even clearer and more popular explanation of his idea(s). Its a great film and a good place to start with Zizek and even Lacanian psychoanalysis.
I have felt that sometimes Zizek's publishers (I am guessing it is his publishers), give his books misleading titles. For instance, the Zizek book Looking Awry: An Introduction to Jacques Lacan Using Popular Culture, I feel to be a terrible introduction to Lacan and Lacanian theory. Its a good book, but not as an intrduction to Lacan. Likewise with this book, I feel like Zizek just wrote a book which had a sizable chunk dedicated to Lynch and therefore they decided to name Lynch in the title. It is a bit misleading, but if you already read Zizek you won't care.
Really, the best thing about the book and Lacan's theory about the movie is how it makes clear a "part" of Lacanian theory, namely how "fantasy" functions. There is some other good stuff here which I have found really useful, such as a discussion of how "systems" usually function on two levels- an ego ideal level and a superego level, which mean that they simultaneously give contradictory "orders" and therefore the best way to bring a system down is to follow it to the letter of the law. I spent some time with a friend coming up with all kinds of examples and the model seems to work very well.
In any case, if you are a Zizek fan and a Lynch fan, check this out. Otherwise perhaps read The Impossible David Lynch by Todd McGowan which is also Lacanian but much clearer and more concise, and also film The Pervert's Guide to Cinema which can be bought online.