I agree with the camera mentions, but definitely understand how difficult that can be, I once spent a week with trig headache getting a 3D camera right for a different project. There are probably some good assets that could help you out with that too :).
I think one thing that would make a huge difference is if the left and right movement of the player did not affect the camera, but just the mouse did, I think that's the way this sort of control is done typically :). As it is, the mouse and left/right movement fight each other.
That said, you did an AMAZING job on the music and graphics, to the point where they actually drive the atmosphere, that's what sells something. Iron out the gameplay kinks, and you could have some real traction with this. Keep it up!