The character design is fantastic also (the nurse rocks). Reminds me a lot of "Thirteen Ghosts" . The actual model / textures on the characters are severely lacking though. Other than that, the enviroment graphics are sweet.
The general premise could work . Silent Hill atmosphere in a FPS. Personally, I would love to see a Silent Hill atmosphere FPS, \'cept the game would also have limited ammo (RE 1 style, baby!) and no music. Instead, you would walk around with different sounds haunting the area. Also, instead of trying to constantly make it a kill fest, a lot of the enemies would be more stealthy and pop out of corners,etc.
Now that is my dream FPS.