Great atmosphere, the graphical style and music/effects make for a very eerie atmosphere. I thought the placing of torches was done well - I was always almost out of candle by the time I got to the next one. Great way to build tension.
I agree with other commenters that the monsters were the least spooky part of the game - I was more on edge just wandering around than when I actively encountered a monster.
Overall, well done. Looking forward to getting spooked in future demos.