Where does the dh lawrence quote in the move Waking Life "It's kinda
like D.H. Lawrence had this idea of  two people meeting on a road, and
instead of just passing and glancing  away, they decide to accept what
he calls the confrontation between  their souls. It's like freeing the
brave, reckless gods within us all." come from?

I don't think that's a quote. It sounds like a loose paraphrase from
D.H. Lawrence. Compare it to this, from Lawrence's "Studies in Classic
American Literature":

"When I meet another man, and he is just himself - even if he is an
ignorant Mexican pitted with small-pox - then there is no question
between us of superiority or inferiority. He is a man and I am a man.
We are ourselves. There is no question between us.

But let a question arise, let there be a challenge, and then I feel he
should do reverence to the gods in me, because they are more than the
gods in him. And he should give reverence to the very me, because it
is more at one with the gods than is his very self.

If this is conceit, I am sorry. But it's the gods in me that matter.
And in other men.

As for me, I am so glad to salute the brave, reckless gods in another
man. So glad to meet a man who will abide by his very self.

Ideas! Ideals! All this paper between us. What a weariness. 

If only people would meet in their very selves, without wanting to put
some idea over one another, or some ideal.

Damn all ideas and all ideals. Damn all the false stress, and the pins. 

I am I. Here am I. Where are you ? 

Ah, there you are! Now, damn the consequences, we have met. 

That's my idea of democracy, if you can call it an idea." 

http://xroads.virginia.edu/~HYPER/LAWRENCE/dhlch04.htm