San Francisco
During the early years in San Francisco he spent his time exploring the Bay Area and widening his social contacts which eventually brought him into partnership with artist and filmmaker. Steven Arnold. In 1969 they began a midnight film series in a Chinese Movie Theater called The Palace, where Sebastian programmed an eclectic mix of experimental, classic and camp films under the label, Nocturnal Dream Shows.
Although the programs began as a showcase for films clearly outside the mainstream and were popular with a stoned-out audience from the start, eventually Sebastian branched out to include live entertainers. Stoners of which there were many in the audience may have found this charming but the performers believed they were better than their shows and opted for a more formal structure. This created a schism in the group, and Hibiscus, the defacto leader took a number of performers off to become The Angels of Light and began performing free shows as demanded by their spiritual guru, Irving Rosenthal. Those that remained at The Palace went on to a glorious two year run of creative vitality and elan.