Diane Varsi, who was nominated for an Academy Award for her first film, “Peyton Place,” died on Thursday in Los Angeles. She was 54 years old and lived in Los Angeles. Miss Varsi played Allison MacKenzie in “Peyton Place,” the 1957 melodrama based on the novel by Grace Metalious. She walked out on a contract with 20th Century-Fox and moved to Bennington, Vt. She then made a series of mostly low-budget pictures, including “Wild in the Streets.” Her last film was “I Never Promised You a Rose Garden” (1977). NY Times.