I'm a bit surprised this has gone under the radar. It's still slowly being worked on by about three people. As of Dec. 3/11, 80% of the levels are done. However, they do need some help with character modeling and animating if you think you would be able to donate your ~skillz~ for the cause.
My favorite thing about this mod is that it looks like it perfectly captures the atmosphere of the first 3 Silent Hill games. It really looks brilliant. It is staying with the first person perspective, but looks like it keeps with everything else that is vital to the franchise. There's particular focus being placed on the puzzles, as well as cutscenes.
ModDB page for Alchemilla
Here's some screens and shit.
Here is a teaser:
Check it out, guys. It looks pretty sweet. Support them, because it's a labor of love.