Toby, a disillusioned film director, is pulled into a world of time-jumping fantasy when a Spanish cobbler believes himself to be Sancho Panza. He gradually becomes unable to tell dreams from reality.
Toby, a cynical but supposedly genius film director finds himself trapped in the outrageous delusions of an old Spanish shoe-maker who believes himself to be Don Quixote. In the course of their comic and increasingly surreal adventures, Toby is forced to confront the tragic repercussions of a film he made in his idealistic youth - a film that changed the hopes and dreams of a small Spanish village forever. Can Toby make amends and regain his humanity? Can Don Quixote survive his madness and imminent death? Or will love conquer all?
In Spain in the present day (people use cell phones, for example), a commercial is being filmed. This must be a major production, on the scale of a movie, and the cast and crew have come in from somewhere else. They speak English.
This commercial includes Don Quixote, played by Toby.
At a nice restaurant with the others involved in the production, Toby makes the discovery that the student film he made ten years ago, "The Man Who Killed Don Quixote", is available on DVD. He buys a copy and takes it to the hotel room where he and Jacqui are having a romantic relationship. They watch the black and white film while getting ready to do something else, but Jacqui is married to one of the people in charge of the production, and the husband is not happy to learn that someone is fooling around with his wife.
Also, the black and white film changes to color, so the viewer is no longer watching Toby watch the film, but the events of the film itself. No, actually the viewer isn't, instead watching Toby discover the man who would be perfect for the role of Don Quixote in his film, and old shoemaker named Javier. Then he goes to Raul's bar and discovers his Dulcinea, Raul's sister Angelica. Raul is not happy with the idea of his teenage sister getting involved with anything like Toby's film.
Back in the present day, Toby discovers the town where he filmed his movie is nearby, and he borrows a motorcycle to return to the town and see what has happened.
"Quixote Vive!"
It seems Javier is totally convinced he Is Don Quixote, that he is hundreds of years old, and Toby is his Sancho Panza.
When Toby visits Raul, they both speak in Spanish with subtitles until Toby breaks the fourth wall, pushes the subtitles away, and insisting they speak in English. Angelica is apparently still alive, but Raul has kept her bedroom the same and mourns her because she has done something terrible.
Toby and Javier have several adventures together. One involves a fire that starts by accident which Toby could have put out (though he would have needed a hose or something, and this doesn't even seem like a place that would have running water). Toby was not responsible and yet the cops think he is.
Toby's adventures with Javier continue. As Quixote, Javier sometimes thinks Toby is his sworn enemy.
Toby and Javier discover Angelica, who explains she became a model and now works for Alexei, a rich man who is described as being like a spoiled child who needs to be entertained ... and like Donald Trump. One of the people in charge of Toby's new production said that, as he hopes to advance his career by impressing Alexei with his spectacular attempt to entertain the rich man in his magnificent castle.
And the fake Quixote who shows up and ends up being a highlight of the production?
The audience for this spectacle includes Jacqui, and Toby has been struggling with choosing her or Angelica.
The tone of the movie changes dramatically at this point. Already the viewer has seen that Angelica is treated cruelly, and yet she claims to be happy because look where she is living. And at long last, Don Quixote is no longer a comic character, but someone to be pitied.
There's nothing wrong with the tragic events that follow unless the viewer was looking for straight comedy.
