Play Overture on easy difficulty, it's easily the worst of the series, especially gameplay wise, but you need to see it through for the plot of Black Plague to make any sense (the Wikipedia plot summary will not cut it). Overture is not better than Black Plague, Black Plague got the best reviews of the series and I completely agree with them, so don't listen to Alex >
As for panic attacks, just listened for growls when you're near a dog, or just look at them briefly then turn away so you won't panic. Just be thankful that it doesn't have a sanity meter like Amnesia does that makes your screen go all blurry.