A great Silent Hill flash game
The ambientation makes me feel like if I was really playing the first Silent Hill, although it lacked of puzzles (Having only one, more or less "difficult"), it had some monsters on it. Not too many, but at least there were some. I also love that you're showing us Kauffman past, as he only appeared in the first Silent Hill and had lots of things merged in mystery. The only thing I think you should fix is the option to move when you encounter a monster, as I managed to escape from all the encounters in the game easily. You should try something like making the arrows dissapear until you kill them. It would be more effective.