It looks good and could make a great game depending on how you plan to expand it. I don't know if you plan to make it a horror, an adventure, or what, I haven't found any interactive objects, so I guess it's only the environment so far.
I will just sum things I have noticed while playing it.
- Mouse movement rotates the camera even if the cursor is out of the game screen area. It is quite annoying, especially when you need to move the scrollbar, go to another tab, or so.
- It might be better if the cursor was hidden, but of course it depends on how you plan to expand the game (e.g. crosshair, or a cursor for point and click adventure)
- It is possible to fall out of the map on few places
- Some trees are levitating (I noticed two in the starting area)
- Fireplace in the house (and few other objects nearby) has some clipping issues, which causes flickering if you turn around
- Maybe there should be ambient music aside from the rain, but I know it's just a demo so far
- The sound while walking through puddles doesn't sound like walking through puddles at all (it's more like shooting)
- There are strange green horizontal lines in grass
- There is no speed(/life) penalty for being underwater (not important in a demo, but don't forget about it later on)
That's all I could remember after falling off the map. ;)
Also, be prepared that some people will give you zero rating, solely because your game requires them to install another plugin (it happened a few times already), but don't let it discourage you. Good luck with the game, it will be great once it's completed.