Note: This is an updated review, incorporating elements from my first and second readings. I gave "Memory and Dream" 4.5 stars in my review here the first time that I read it (this past summer), but I just finished rereading it and believe that 4.832 stars :) (and thus a rounding up to 5 in the stars line) is in order.
I have far more experience with fantasy set in distinctly different worlds than with contemporary, especially urban, fantasy. In fact, to my knowledge, I'd read only two such novels (Jonathan Carroll's "The Marriage of Sticks" and Peter Beagle's "Summerlong") before encountering "Memory and Dream" (although since then I've read--and very much enjoyed--more of de Lint; see my reviews of "Dreams Underfoot," "Someplace to Be Flying," and "Moonheart"). I see that de Lint is a fan of Carroll, and that makes sense: "The Marriage of Sticks" and "Memory and Dream" have the same ambience, with dark shadows present in the background of seemingly normal life. And both are parts of series in which a main character in one book can appear peripherally in other books. In Carroll's "Crane's View" series, it's police chief Frannie McCabe; de Lint's Newford books have artist Jilly Coppercorn and singer Geordie Riddell most prominently but many others as well. "Memory and Dream" focuses on another artist, Isabelle Copley, a friend of Jilly's but the very best friend of a writer, Kathy Mully, who has been dead for five years when at the very beginning of the book Isabelle receives a much-delayed letter from her. It turns out that when Izzy (as she called herself then, after Kathy had christened her "ma belle Izzy") and Kathy were roommates and college students (and friends with not only Jilly but also, especially, an aspiring book publisher named Alan Grant), Izzy fell under the spell of a mysterious but extraodinarily talented artist named Vincent Rushkin. The novel tells the story, in the past and the present, of Kathy, Isabelle/Izzy, Alan, Rushkin, and the "numena," beings of flesh (but not blood) that Izzy learns to bring forth from certain of her paintings.
de Lint manages to juggle a variety of nonfantasy issues here--friendship, love, loss, what it means to really know (or not know) someone, how relationships change over time (and in some ways stay the same), abuse and the reactions to it, the relationship between the private life and character of a painter or a writer to his or her works (Marion Zimmer Bradley and H.P. Lovecraft, I'm thinking of you), the desire for control, and the extent to which one can change the world. This last does dual duty as a nonfantasy and also a fantasy theme. And from a fantasy perspective, there's the theme of what is real in general as well as the Pinocchio motif of what it means to be real for individuals. The author has a lot of balls in the air and for the most part manages to juggle them well and often with real tenderness and subtlety.
I was at first a little put off by how many times the author used the actual words "memory" and "dream"; I felt hit over the head. And although his leaving a few mysteries at the end is intentional, I wish that I knew a little more about the rules governing the numena. And we never get to see whether one of the major revelations to us about who started a crucial fire ever got communicated to the main character! But those are minor quibbles compared to the real magic of "Memory and Dream," which is still a solid 4.832 stars in my eyes. de Lint got me to care about the characters and the plot and want to know What Comes Next--always the best criterion for a good story. During my first reading, I reached the climax of the book while at lunch during a conference, and I missed the next two or three presentations because I couldn't bear to set the book down! And the dénouement, which began for me with the description of the last painting and then expanded into the last chapter, brought me to unabashed tears. It did again the second time (which was better than the first).
Once you finish the book, I think that you too will want to reread it with the perspective of knowing the full story. It's almost like a new book on the subsequent reading.
Oh, and three minor points: John Howe, the well-known Tolkien artist, illustrated the cover of the hardbound edition; Kate Reading does a fine job of narrating the audiobook; and I'm sorry that Isabelle/Izzy does not (so far) appear (except in a couple of passing references to her art in one of the stories in "Dreams Underfoot") in any of the other Newford books by de Lint! I miss her, although I got to see her again in my rereading of "Memory and Dream."
What an atmospheric, evocative, engaging, and touching book! I highly recommend it.