Does that girl in storage have anything to do with the main story?!

[Sexbad]

Spoiler below!

She was indeed the girl who Danny killed in an event that gave him a change of heart. It's confirmed by a commentary node in the level.

I'm pretty sure that the unsettling lantern event was where you ended up killing her. There's a dress lying on the ground and its lighting is also provoked by a scream. I'd also like to note the chains hanging from the ceiling because they really feel representative of the weight put on your shoulders by this