Thanks a lot for taking the time to leave this comment and to also play the game! I am at work right now, but I look forward to checking your video out later. A few answers for you:
-Yes, differentiating the direction from which the sounds are directly coming is a constant struggle, and one in which I continue to strive to improve. I have both under and overcorrected based on feedback, and most peoples' experiences with the iterations seem to alternate between being way too difficult and then way too hand-holding. But, I'll keep at it.
-I don't really have any ideas to make a single player storyline at this time. It's definitely a very cool idea with a lot of potential, but as I do this as a hobby between school, work, and kids, I have to be sure to keep my scope in honest check and try not to bite off more than I can chew!
-Hmm, I'll have to look into the issue about not being able to see the item after placement. I haven't seen this issue before, but I'll check it out. They can be sometimes difficult to see when the light is off (like the rosary), but I haven't seen them disappear. I wonder if maybe they're sinking into the carpet...I recently edited the carpet's texture, and I'm wondering if I may have bumped up it's Y position a bit on accident.
Again, thanks for your invaluable feedback and for taking the time to reply!