I saw it when it first came out and was astounded by it. Being a David Lynch film, I kind of knew what to expect but it exceeded my expectations.
Right from that opening scene, where you see an idyllic suburban neighbourhood, then the camera moves under the lawn to show a seething mass of insects, the theme is set right there: something rotten lurks under the surface in Suburbia.
Dennis Hopper's psychotic performance as Frank Booth is a career best and it's quite terrifying but oddly comical at the same time. Lynch is an expert at making the viewer feel unsettled and there's something very disquieting about seeing Hopper inhaling gas and becoming crazed; you want to laugh and scream at the same time.
Kyle McLaughlan's performance is just about right - he plays Jeffrey with just about the right blend of innocence and naivety, although I felt he was possibly a little old for the role.
One criticism (and this is one often levelled at Lynch) is that the female roles are not very well written. Isabella Rosselini is basically a victim and Laura Dern gets to do very little of any great value.
That aside, there is still plenty of rewarRAB on offer: the glorious cinematography, the wonderful use of colour, Angelo Badalamenti's soundtrack (and the use of the title song and Roy Orbison's "In Dreams").
And unlike Lynch's later works, such as Lost Highway or Mulholland Drive, Blue Velvet is quite accessible - the plot is reasonably straightforward, although with some wonderfully surreal touches, even though nothing much really happens in the course of the film. What really keeps you gripped is Hopper's wonderfuly over-the-top performance. Like Jack Nicholson in The Shining, Hopper's characterisation of Frank Booth carries the film and lifts it from being a very good thriller into a modern masterpiece.
