...Commando Knife ! ...commando gloves ?
Dude, what is it with you and your commando stuff? Too much CoD? This game seems to be set somewhere between the 18th and 19th century, when muzzleloader pistols were pretty widespread. (please correct me if I'm mistaken parsgame) Actually, I highly prefer that setting over any modern warfare title.
About the game itself: Yes, some animations are choppy, some models need polishing, but I think you should focus on that later. First off you should go on with some bugfixing, improve the movement and fighting system.
I really like the atmosphere, the fog keeps one wondering what's coming next (that's what I loved about Silent Hill 1 and 2) and keeps up some tension, but I think that a little bit less fog wouldn't hurt. I'd get pretty lost after a while, especially since you seem to have many long pathways in your levels.
Speaking of levels: I'm not entirely sure if you need that many levelchangers. Keep loading times to a minimum, your players will thank you for that.
I wonder what the story might be about. You aren't going to make it about something lovecraftian like Cthulhu, are you? (I'd really love to see that

I'm a sucker for Lovecraft.)
Anyways, rest assured that I'll follow this project. Looks somewhat promising and interesting.