Episode 3 "Rest in Pain" (April 26, 1990)
After the iconic dream sequence the series quickly returns to form, with an episode focusing on developing many of the inter character plot threads that have been already seeded.
Cooper recounts his dream in a casual manner to Lucy and Truman after learning about One Eyed Jacks from Audrey. He admits he was told the name of the killer by Laura in his dream, but cannot recall what she whispered in his ear. He continues to explain that the dream is a code that needs to be decoded, break the code and solve the crime.
The focus of this episode is the funeral of Laura Palmer, a great character set piece where we see many of our major players together and interacting. The funeral also, as foreshadowed in Cooper's dream, introduces us to Maddie Ferguson, Laura's identical cousin.
Tensions flare surrounding the burial of Laura; Truman hits Albert for being a disrespectful jerk, James and Bobby tussle at the Funeral itself in a great bit of slowed down dramatic action. Later Truman discusses the town's "Dark side" with Cooper, introducing the Bookhouse Boys and Bernard Renalt. Explaining the link between the Renalts and illegal drugs in the town draws a link to Leo and from Leo to Laura. Jacques releases that someone is onto him and calls Leo for help.
Almost echoing the nice town having a dark side narrative , Truman is warned by Josie of Catherine and Ben's plans for the Mill. The not so well kept secret of Truman and Josie's relationship is exactly that, a secret that many people know and shows us that even the good Sheriff is not without his secrets.
Albert's work reveals a number of clues about the events surrounding Laura just before her death. Most notably the plastic piece in her stomach, the nature of her being tied up when she died, her cocaine addiction and the fact she had been pecked by a bird. From here clear lines of investigation open up and take us towards the end of the season (but not the mystery). The hidden parts of Laura's life are slowly being brought to the surface, the code is being unraveled...