This is the movie that should have won Lili her first Academy Award (see this article for details.) I don't remember when or where I saw this movie the first time but I remember it changed my attitude about Lili from "She's that cool chick who sang about Joe in Say Anything" to "She's my favorite actress." Lili showed her dedication to her craft (some people call it doing a Di Niro) by changing her weight for the part. It's the beautiful moments in this film that really make the difference though. The quiet looks and thoughtful moments which are Lili's trademark. Also the complexity she brings to Rose as she portrays a young woman in love for the first time, a woman who is both strong and shy, self-effacing yet willing to stand up for herself. It's so rare to find a character that cares about other people enough to want to improve them without preaching to them. It's characters like this that make the difference between a competent actor and a transcendent one. I would also like to mention that I believe this film turned me into a Bob Dylan fan.
Favorite scene: The end of the movie when they hug - subtle yet heart wrenching.