Interesting! I like what you do with the lighting, it's a really cool idea. I'm personally very biased towards music, so I'll always recommend adding some (there's many good ones in opengameart if making music isn't your thing); especially in games like this one where you're trying to add an interesting mood to the game. I liked how your own light makes walls look red like your nightmares; it's an interesting detail.
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Thanks! I used the red light to keep sort of a dual color ambiance going, but then while playtesting i kept doing double takes when i spun around sometimes... it was a really interesting little bonus, i'm glad someone else noticed (guess i'm not just too jumpy). :P
As for the music, i agree, and i've been meaning to learn more about sound, because i think when you really nail the audio (music & sfx), it adds SO much more life to a game. Hopefully i can take some time for that this semester. Thanks for the feedback.