First things first, I love this game. I love the feeling of being unsettled. The only other game to really give me the feeling that I've always wanted was Fatal Frame 2, but this easily has become my favorite horror game. I did have a question for those that have played this far more than I. I know I can't look directly at enemies or my sanity goes to red quickly, but is it just directly looking or is it seeing the entities at all that causes my sanity meter to rise? I love looking into the unknown, which would be a real bummer for me if I weren't allowed to see these enemies. And is there a way to remove this penalty? I'm not asking to make the game easier, even though that would be the outcome, I just really like watching these ghostly figures.
And one more question. Are there any other modern games like this that are even scarier? I've checked out the Penumbra games already, but am hoping there might be a few games out there that give the same experience like Amnesia.