i am trying to find the source (book, movie,etc) where the following
phrase comes from "I look at secretive dreams...I am watching".

Dear wings711,

The complete quote is:

"I look at secretive dreams,
I let the straggling days come in,
and the beginnings also, and memories also,
like an eyelid held open hideously
I am watching."

It derives from the poem "Sexual Water", written in 1935 by the
Chilean poet Pablo Neruda (1904-1973).

However, since the original poem is written in Spanish, the quote you
have in mind is only one possible translation of that stanza. In
another version, I found it translated as:

"I see the silent dreams,
I accept the final days,
and also the origins, and also the memories,
like an eyelid atrociously and forcibly uplifted
I am looking."

Please follow this link to read a translation of "Sexual Water"
containing the quote as you know it, in the translation by Robert Bly:
http://physics.ucsc.edu/~leif/spanish/sexualwater.html
UCSC Physics Dept.: Leif Poorman's Page - Pablo Neruda, Sexual Water

Please follow this link to read an alternative translation of Neruda's
"Sexual Water", as translated by Donald D. Walsh:
http://www.geocities.com/rgib1138/neruda4.htm
Fates & Fury: Poets - "Sexual Water" by Pablo Neruda

Please follow this link to read a brief biography of Pablo Neruda:
http://www.kirjasto.sci.fi/neruda.htm
Books and Writers: Pablo Neruda

Please follow this link to read the original Spanish version of
"Sexual Water", "Agua Sexual":
http://www.uchile.cl/neruda/obra/obraresidencia2f.html
University of Chile: Pablo Neruda - Agua Sexual

Search terms used:
"I look at secretive dreams"
://www.google.de/search?q=%22I+look+at+secretive+dreams%22&ie=UTF-8&oe=UTF-8&hl=de&meta=
"Pablo Neruda" "Sexual Water"
://www.google.de/search?hl=de&ie=UTF-8&oe=UTF-8&newwindow=1&q=%22Pablo+Neruda%22+%22Sexual+Water%22&btnG=Google+Suche&meta=
"pablo neruda" "agua sexual"
://www.google.de/search?q=%22pablo+neruda%22+%22agua+sexual%22&ie=UTF-8&oe=UTF-8&hl=de&meta=
"espesos goterones de" "pablo neruda"
://www.google.de/search?q=%22espesos+goterones+de%22+%22pablo+neruda%22&ie=UTF-8&oe=UTF-8&hl=de&meta=
"Pablo Neruda"
://www.google.de/search?hl=de&ie=UTF-8&oe=UTF-8&newwindow=1&q=%22Pablo+Neruda%22&meta=

Hope this answers your question!
Best regards,
Scriptor

Have you seen the beautiful film "Il Postino" (The Postman) in which
Neruda is an important character?

http://archives.obs-us.com/obs/english/films/mx/postino/toc.htm

Leli, yes! great film. thanks for the heads up.  I'm really enjoying
researching and reading up on Neruda.

wings711