Well, it's ready.
I have to say I'm quite happy with it. While it may not be the best thing ever, it's something that can finally be taken seriously, it's what I always wanted the original to be.
To download, go here:
http://www.bigbluecup.com/Newsite/Games.aspx/Detail/1294/Living_Nightmare_Deluxe(Please vote/comment after playing.

)
WARNING: There are some scary moments that can make you jump. If you don't like that, read the spoilers text included with the game, or just don't play at all.

The plot is as such:
James isn't feeling very well. It's his 20th birthday and
he has come down with some sort of cold. This isn't too
unusual for April, it is very cold and rainy outside.
His family and friends visit, but James quickly calls off
the celebration after only an hour or so,
fearing that he will accidentally spread whatever illness he has.
However, what he
is dreading the most is how he will sleep, as through his
whole life, he has had strange dreams (mostly nightmares...)
and delusions whenever he sleeps while sick.
Although he no longer fears the nightmares as he had in the
past, James is certainly no fan of becoming delusional and
suffering from incredibly light sleep.
Dreading the worst to come, James decides to write to his
journal to take his mind off of things, but ends up writing
about his current situation. Thinking about the nightmare(s?) sure
to come, James can't help but think of the very first time it had
happened, and begins to think back to the experience...
You then take control of the 5-year-old James in the memories
of the now 20-year-old James.



Commentary video:
http://www.youtube.com/watch?v=HSZ5GDzzZuk