I really liked this. The loop is completely seamless, and the song has a really nice creepy, ominous atmosphere. And I can definitely hear the Lavender Town inspiration in it. All around, very good. The only thing I can think of to make it better would be to make the deep undertones running through the song ever so slightly more prominent when they're at their lowest volume to make them sound more continuous. But then again, that might just wind up screwing the whole song up. I don't know. Just remember to experiment with your art.
Please contact me if you would like to use this in a project. We can discuss the details.