Found this description of the Silent Theater on Fairfax listed on a CitySearch site.
Rumors of blood on the lobby carpet and ghosts in the projection room have titillated Angelenos for years. Silent-film fans John and Dorothy Hampton opened this movie house with Cecile B. DeMille's "The King of Kings" in 1941 just as Nora Desmond's close-up was fading to black. But it was the headline-grabbing murder of their slick-talking protege, Laurence Austin, by a hired gun who sprayed the theater with gunfire in 1997, that cemented the house's place in Hollywood lore.
"sprayed the theater with gunfire" ... it all took place in the lobby with one or two shots in the theater-proper. I don't know about ghosts in the projection room ... that's possible.
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