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The Anthology of Horror was a unique mapping project designed to bring three distinct stories, all in different locations and setpieces, to life. It was cancelled after the release of Shelter, the first entry. The reason why can be seen in the last news post.
First of all, I hope I'm right in understanding this is a different mod from The Worry of Newport. I didn't play that due to the whole remaking of part 1, and I'm not sure if you have actually done that yet or not, but anyway...
Most importantly, I didn't like it. There are a few reasons why that I'll get into, but as for how I played it, I may not have been in the mood to. I can appreciate a good horror game/story/whatever but there isn't much that really gets to me, Amnesia: TDD, Penumbra and Silent Hill being the ones that do. Some might say I'm setting the bar a little high, but then that's what we're here for, right?
I'll start with atmosphere. I really wasn't getting any, and that could just be my own fault. The car you drive past at the start I actually drove past a bit then stopped because I wasn't sure where the hell it was going, which didn't help. I could hardly see into the forest, which also didn't help. Grey fog walls are dull to see when looking into the forest. Also, on the way to the shack, that weird cliff thing on the left side of the road made no damn sense at all, WAAYYY out of place. You don't need physical walls to stop people going off the path and looking at things, instead you make them not want to go there and have the path clear and safe.
Maybe this is my own fault for not reading the readme (I'm too lazy to read readmes other than for installation usually, unless I'm yelled at to read it from the start of it) When I was walking to the shack I got bored (again, atmosphere!) and pressed random buttons; throwing grenades and opening up the book before reaching the shack, which then proceeded to break and force me to restart. I broke the book again when I was at the shack when page 2 refused to load, so I threw the book and the game ended. I did actually finish the game, but I never saw page 2, and guessed (correctly) the ending out of boredom.
You talk about atmosphere only working when there is a good story. It works both ways.