Yes David Lynch rocks. I actually own the $40 Eraserhead DVD from his site. And the official David Lynch Eraserhead T-Shirt. It's damn sweet. Eraserhead is such an inspiring film in terms of lighting, cinematography and sunspense. It's got such a great eerie feel to it. You have to see this film one way or another. It cant be missed. It might give you nightmares though because there are so many scenes that freak the hell out of me.
If any movie inspires me to make my own, this film is it. Other Lynch movies are great. If you want to see more, see Blue Velvet, Wild at Heart, and Mulholland Drive. Those are great.
Also, Jennifer Lynch (his daughter) wrote and directer a feature film called "Boxing Helena." It's equally as sick and twisted as her father's. It's about a doctor who becomes obsessed with a female patient and amputates her arms and legs so she can't leave his sight. Not the best acting or whatever in the movie, but it's stiil worth the rental.
I also own the short films of David Lynch on DVD. NOw those are some insane, meandering stories. Lighting and directing is top notch though.