Besides Twin Peaks, are there any other films of Lynch's that you enjoy? I heard he was working on a monkey related film as well.
Yes, he does have something new in the works.  He's always mysterious about it.  I also really loved Eraser Head.
Despite having a modest budget, around $10,000, Eraser Head was still one of the most critically acclaimed movie of Lynch's career. Did the bizarre nature of the film bother you at all or is that part of the appeal for you?
It's actually what I like about it.  It's a subtle creepiness to it, that makes you feel unease without being aware of it happening to you.  I've always been a fan of Surrealism.
As a fan of surrealism in films, do you also enjoy surrealism in other mediums, such as the fine art of Salvador Dali? Does immersing yourself in such art impact your dream experiences at night?
I do love it in all forms.  Dali is a favorite for me as well.  It's hard to say how it has influenced my dreams, because they have always been fairly surreal.  I've always been an active dreamer, sometimes a little too much. LOL.  Things can get out of hand if I watch too much of that stuff.
Have you ever had the opportunity to watch some of Lynch's more obscure works, like Lumière and Company? He only produced a small portion of the final output of this anthology, but it was a well-received film critically. 
That's one I haven't seen yet.  I will have to check it out soon.  I have Lost Highway, Inland Empire, Blue Velvet, and Mulholland Drive.
What is the unifying theme of Lynch's works that interests you the most? Or is it a combination of his equally thought provoking and light-hearted approach to film making that makes his works so attractive?Side by Side might be a good example of these seemingly contradictory elements coming together to form a masterpiece.
I like that he approaches films as a painter, with broads strokes.  He "paints" an overall picture that will evoke emotions from the viewer.  I also like that he doesn't make it genre specific.  There's always some drama, horror, suspense, and comedy rolled up into one.  
The appearance of "painting" a picture on screen may be the result of Lynch being influenced by the likes of famous painters Edward Hopper or Dali. Have you ever seen the works of Hopper in person?