I liked it for what it was
The sounds were dead on. I REALLY hated those fucking...flying...giant bee things. Everytime they got near I had to turn the sound down when I was playing SH3.
I think it could have been better though. Like Seph maybe getting the **** scared out of him a few times in typical Silent Hill style, or perhaps having a comedy point at the end where he reaches his destination and finds an undead Aeris who kicks his ass or something (have to admit that would fit perfectly)
By the way...what the hell made you decide Sephiroth vs. Silent Hill instead of any other character?