So the backstory of this TV Movie/Pilot is well-told, Lynch made this as a pilot for ABC. ABC didn't want it, so Lynch moved on. But, it still lingered in his mind a year afterward and decided to rework it into a feature film.
And while this pilot is missing some of the best elements of the Film, it is still a well-acted, well-directed, well-shot, and thrilling TV Movie that has scenes that pretty much all ended up in the final feature film in 2001.
And even with the poor quality of the copy I watched, it is still incredibly entertaining and there is a perfect atmosphere that lingers throughout the 89-minute runtime. I don't think this would have worked well as a TV Show, and it turning out to eventually be made into a feature is something that was the best thing that could have happened to this story, David Lynch, Naomi Watts, and Justin Theroux.
The full pilot is on YouTube if you want to check it out, for a pilot it is quite amazing and I believe you won't regret watching it.