The people walking by are staring at the woman in the street.
A man is sitting in a theater.
A single man is not referred to as "people." If you are in the street, you are not sitting in a theater.
exists e2 e1 s1 x1 x2 x3 x4.(n_street(x4) & n_woman(x3) & n_people(x1) & at(e2,x3) & in(x3,x4) & Actor(e2,x1) & v_stare(e2) & a_by(s1) & Manner(e1,s1) & Actor(e1,x2) & v_walking(e1) & (x1 = x2))
exists e1 x1 x2.(in(e1,x2) & n_theater(x2) & Actor(e1,x1) & v_sit(e1) & n_man(x1))