"Welles" was originally an assignment in which a student is given 2 1/2 minutes to prove something on a tabletop. In this case, what is attempted is to prove the importance of dreams.
In a manner of a recorded child therapy session, a dream is recalled out loud. The monologue then nonchalantly moves on to something else before getting cut off. It is hoped that what is shared stays with the viewer and they wonder "what did that mean?" sometime after seeing it.
Originally there were three dreams to select from. The first featured Bob Dylan throwing women down flights of stairs; the second involved a man in red beckoning me out of a tree; the third was about Welles. Because it was the hardest to interpret, Welles won out. Perhaps it was for the best- it is also the most poignant of the bunch.