No, your mechanism has three major flaws in it. The first is that you do an impossible reaction on the alpha-chloroamide, the second is the elimination of hydroxide when chloride would be a much better leaving group, and the third is a thermal [2+2] cycloaddition of alkenes.
Alpha-halocarbonyl groups are particularly effective electrophiles on the alpha carbon atom. Orgopete hinted at dimerization, which would certainly be a possibility (though my solution gives C12H22N2O2 instead of H26) with the incomplete structure. Taking into account the diphenylvinyl group, however, you've got a strong electrophile and a reasonable nucleophile which can combine together into a six-membered ring.
Though obviously, I might be wrong.