First of all, I loved the beginning how you woke up in the old place and how nice it is. It gives really mysterious feeling.
Sadly I didn't do much town exploring (going inside houses, I heard it was possible XD), but town was really confusing, because of that it was realllly well done, if it was your goal.
Level designs were really well done inside that 'castle' or 'hall'. Only negative thing is that it had some texture overflapping, but else it was okay.
About scares - There were many 'cheapscares', they indeed got me, but nothing huge. Since castle area was damn huge, those monsters weren't really scary for me (As I am advanced CS creator and I am more used to them already), since few places were DAMN HUGE, then grunts/brutes there were no problem at all. You could go easily around them and they weren't really challenge for me, except that one monster in smaller area, I think it was Machine room. I made noise and he came my way, but gave up and went into his path.
The dead men chamber was WTF, too many penises
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So for conclusion, it was short, but it was still good in story-wise, it had its own scares as well, but I did expect little bit more. I hope chapter 3 will be longer, better & epic conclusion! YOU CAN DO IITTTT!!!