I'm glad to hear you think the demo is much better. As far as the music box music, it wouldn't be a problem to lower the volume. I'll have to see how it sounds like that, though. I'm glad you think it helps set the mood.
As far as the player movement goes, I do prefer it the way it is now. I had run into one of several issues with my demo and had lost the quicker player speed. I, however, had exported the demo and forgotten to add it again. When I played it, it was definately noticable how slow the player was actually moving. But, in anycase, yeah, the quicker speed's definately better.
As far as the jumpscares are concerned, jumpscares are subjective. I'm glad you liked the movements, though.