chunk: Dirk and Reed begin using cocaine. Due to Dirk's drug use, he finds it increasingly difficult to achieve an erection, falls into violent mood swings and becomes upset with Johnny Doe, a new leading man Jack recruited. In 1983, after having an argument with Jack, Dirk is fired, and he and Reed leave to start a rock and roll career along with Scotty, a boom operator who loves Dirk. Jack previously rejected business overtures from Floyd Gondolli, a "theater" magnate in San Diego and San Francisco, who insists on cutting costs by shooting on videotape, because Jack believes that the tapes will diminish the quality of his films. After his friend and financier Colonel James is imprisoned for creating films depicting child pornography, Jack works with Floyd, becoming disillusioned with the lack of scripts and character development in the projects Gondolli expects him to churn out. One of these projects involves Jack and Rollergirl riding in a limousine, searching for random men for her to