WEll, I'll say it about one of my latest favourites... I'll try my best.
1.Why is she selling lighters/matches is there any significance to the movie?
Well, the Christiansen tale of the Little Match Girl is just revised and put in a modern setting; thus, she isn't selling matches, she's selling lighters. Further, I think the matches and the randomized ones and zeros on them is a way to connect to the simulation/game "Resurrection of the Little Match Girl"
2.How come she starts shooting everyone who does not want to buy a match from her?
Actually, that part made me cry. Anyway, from what I understand, she is a program within the simulation and has a bug. Hence, she's shooting people. I also thought it more in the context of the actual story of Little Match Girl - she dies because nobody buys matches from her. So this time, she just takes revenge on all the people who don't buy matches: because if nobody buys matches, that collective "nobody" equals cruelty.
There is also the possibility that the LMG program gained sentience and is understandably bitter towards those who just will not cough up a few wons to save a girl. (the sentience thing I thought when the System said "She's reformed. Nobody will notice her again.")
3. Is it a game within a game?
Yeah. At least, that's what I thought. Either that, or the world of the movie is a simulation that generates a bug with the Little Match Girl - in which case it would be the simulation's cheap-ass de-bugging systems. Think of it like Microsoft where mostly, users are used as beta-testers of the product. In all cases, though, the movie isn't very explicit about why the game is being played. There's just enough evidence to suggest that there is a hyper-realistic game, played within a simulation, and that's it.
4. If she dreams about you..you win the game....whats the point?
I took it as more of a play on conscience and again, think back at the story. The original LMG sees her grandmother. This LMG sees her now-dead boyfriend. This person, in both instances, remains the only person that has been kind to her. The goal isn't so much as to be the one she dreams about, it is to be the one who shows her the most kindness. Of course, the rules dictate you gotta do that precisely by making her suffer, but if you wanna get REALLY anal about it (which I don't think is adequate, given the movie's nature), we can just say that love hurts. The achievement, I think, is not just to occupy her dreams, it is to be WORTHY of them.
5. If the objecxt of the game is to freeze her and win why didnt they do it in the end?
Well, "Falling Leaves in Autumn" (Choopung) was the developer of the simulation-regulator ("the System"). He somehow got stuck and the regulatory program of LMG is his ticket out. That's what I figured (I seem to have a knack for finding connections that don't really exist, like Russel T. Davies' "science" fiction) further, the LMG program can regulate the System, yes? Well, it can also plunge it into chaos - since it is pivotal to the System's functioning, it cannot be erased, only updated. That kinda implies that it's part of its source code, or like a kernel file. In any event, whatever happens, happens, and Ju, with Choopung's help, gets outside the boundaries of the System and into it's core (think back to the Matrix and The Source). Ju had, apparently, fallen in love with or had taken pity for the LMG, so he attempted to rescue her, and in the "Good Ending", managed to. Note that, however, the System took Ju as a "virus", probably to imply he would be able to do things beyond the System's control - such as rescuing the LMG.
The interesting part is, the presence of Hee-mee (the girl in the internet cafe at the end) and the arcade girl, the "sad" ending and things that make too little sense for it to be a simulation (Ju's actual life) also presents possibility for everything being Ju's waking dream or imagination of a better, more pleasant life with action, romance and everything thrown in between. Who doesn't dream of a life like that (quite possibly excluding the Little Match Girl... though I wouldn't say no.)
Phew... I was gonna go to sleep, too...
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