I loved the blanket.
Reminds me of Paranormal Activity 3
I found some of the noise quite irratating at times... I know it's just a demo at the moment but it could be a lot smoother. The rest of the noises and sounds were really creepy and made the it very atmospheric. The use of darkness and flickering lights are put to great effect.
I got confused when you had to sprint from the hook monster as it was like you were sprinting backwards? Other than that it looked like a brilliant Indie game which FG would be impressed with I believe.
Good find by the way!