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The movie was from the end of 80s or early 90s tales from the crypt style. At the beginning of the story a man drives a car to a small town, he rides at night. A man on a bike passes him, a few minutes later he rides still in the car but not on a highway anymore but in the sky. The same guy on a bike passes him again. At the end of the movie they are showing a movie based on his book and after that people start to kill each other.

This is what I remember, saw that movie a long time ago. Does anyone have any idea about the title?

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Although some things are mixed up, many details as well as the part of the book turned into a movie and driving people crazy, remind me of the John Carpenter classic In the Mouth of Madness. But it isn't his book, but he is searching for the author, who's gone disappearing to an odd town, which is actually from one of his books but turned into reality:

With the disappearance of hack horror writer Sutter Cane, all Hell is breaking loose...literally! Author Cane, it seems, has a knack for description that really brings his evil creepy-crawlies to life. Insurance investigator John Trent is sent to investigate Cane's mysterious vanishing act and ends up in the sleepy little East Coast town of Hobb's End. The fact that this town exists as a figment of Cane's twisted imagination is only the beginning of Trent's problems...

Do you read Sutter Cane? ;-)

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This is the scene. youtube.com/watch?v=y_x4mc7kQqE –  Adam Loveless Nov 7 '13 at 21:52
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