Creating Horror Game [XNA]

[Deceptive]

Well if anybody happens to know about XNA by all means go ahead and suggest more ideas. Right now I'm looking for answers to these questions:

What kind of atmosphere do you want?
What setting do you want it to take place in?
Any ideas for creatures/mobs?
Any ideas for puzzles?
Would you like a custom story development tool kit?
What are you looking for in a game like this?

I've decided to use the QuickStart engine(using XNA) and along with a few of my other friends we'll probably start developing this within a few days. We know a sound-guy that has a decent recording "studio". If anyone would like to help development and knows how to code with C#, then go ahead and add me on MSN: themist1@live.com

Again! We have not started developing, considering the engine is done for us we need more ideas on storyline and setting before we begin with anything.