Please, please continue working on this... it is such a compelling concept and could one day become a great game. Really, it's one of the best things I've played on Kongregate in a long time.
Half of that game made no sense. The mailbox and bones thing... I get that you want to keep the player isolated, but it made little sense, unless the handyman was watching the mailbox the whole time >.> Additionally, the key in the mask. I challenge you to try and get a key to stay comfortably in the back of a burlap mask. Why not just put it in his pocket, the logical place for a key? Also, the music puzzle was quite buggy, legitimate music notation would have helped the rhythm (As opposed to randomly spaced eighth notes). On the positive, the chainsaw puzzle was quite clever. Ease up on the scare chords so they have some effect on the legitimately scary parts.
Interesting. Let's analyze this allegory.
Carnival: Heaven (The gate says "PARADISO", Dante's name for Heaven)
Poster: Temptation (Looks fun)
Loondon: Hell (Everyone is very shallow, judgmental)
Hypnotizer: Justice (Will bring it to all... or none.)
Mechanic: Redemption (Sometimes, good people are in bad places)
Jonah: Mankind
In a way, this is an extension of Dante's Divine Comedy: Using some of the same themes, explores human nature. Very interesting, very compelling.
Some very ridiculous parts (You lock up binoculars and a fuse... why? Not to mention the spark plugs and bandages) but a few good ideas. (The cabinet puzzle and the flooded basement were good) Make sure your game makes sense for your next installment. Oh, and the floater/magnet thing? WTF. Try that out sometime, see how well it works.
Wow... Very well written, the puzzles were of enough difficulty to warrant a checking of a walkthrough. I'd have left the end a bit more ambiguous, some interpretation is always good.
 "Magic Orbs"){kind=icon}
 "Help! It's the Unfinished Shadow Game"){kind=icon}
 "Monster Basement 2"){kind=icon}
 "Loondon"){kind=icon}
 "I Remain"){kind=icon}
 "The Company of Myself"){kind=icon}