some odd choices here
You made some ... odd ... choices in this.
The voice of the narrator, and the depiction of him as well, are a little too dark and ominous. He's insane, not evil incarnate. Every time I think of this story, Gene Wilder comes to mind as the ideal actor to play the narrator (and, as long as we're in an ideal world, Marty Feldman would have made a pretty good Old Man with the Hideous Eye).
I don't recall the dinner scene from the story at all. Why include such a non-memorable scene?
During the opening-the-door scenes, the important bits (that he did this extremely slowly, that each night he went just a little bit further) get submerged in the irrelevant details (the exact date, the time).
I actually did like the Pink Panther music, but having used it you should have stuck with it through to the murder and probably even the disposal of the body... stick the murder during the bridge and as the bridge quiets down and goes back into the main theme show him cutting up the body.
The switch from narrative to dialogue when the police arrived was kind of ... I've been looking for another word, but let me just say "bad." Particularly since you had to invent the dialogue.
The alliterative names were unfortunate, and making up full names for the police officers and the neighbor when the victim of the murder is simply "The Old Man" seems jarring.
The final scene is too fast. I don't feel that slow build-up as the narrator passes from doubt that he's hearing anything to fear that the police will hear it to the point where he's certain they're hearing it and they're just playing with him.