Flip Flop of God: Are the "Other World" encounters actually happening, or are they just in York's head (and Emily's)? Not surprisingly, SWERY's been asked this question in multiple interviews... and he's answered in the affirmative to both possibilities. Taking all the interviews into account, the answer seems to be something along the lines of, "The shadows represent malevolent spirits, so their encounters are mostly mental, but because mental states can have a physical effect on people, they can be fought off in a physical sense and can have a physical effect on people by affecting their state of mind." Or something like that.
Troubled Production: Many, many websites noted the game's resemblance to Twin Peaks, and the developers noticed this, so they redesigned aspects such as the characters and rerecorded the lines for the characters.
York's original name was David Young Henning and he also bore more than a passing resemblance to Dale Cooper, the Red Room actually did look more like a "Red Room" with the twin angels being shorter and more elderly, George had a slightly more elderly appearance with less facial hair, and the song "Miss Stiletto Heels" may not have existed in the original version, with the song "Pillow Stain" in its place, which can easily be found in the game in the sound test. The title was also originally "Rainy Woods". The Trailer can be seen here.
The ability to hide in dumpsters suggests you were to hide from the enemies, rather than fight most of them head on. You can see this in most of the Raincoat Killer segments. Which possibly links up the fact that the combat aspect of the game wasn't originally present and was added early in development to keep the publishers happy. Maybe the game would have been more stealth orientated.