Just finished playing, as you have mentioned already the KB+M really needs work, very clumsy and hard to control.
I thought the grainy look to the image might be a bit to much, definitely have some in there but I just felt it was too much.
Need a fullscreen option as many times I was clicking off the game in window mode.
Perhaps change the aim to allow for full movement on the crosshairs, at the moment its aim the way you are facing and with a short distance. (Unless I'm doing something wrong?)
Atmosphere was great, really felt creepy, perhaps add more sound effects like creeks in the floorboards when walking over certain spots.
Reminds me of that online web game...Dead Frontier, but with a RE twist.
Keep up the good work!