There are a few things that struck me about the game:
First of all, in one response here on the forums, the date is set as the 1920s. However, in the introduction story, the couple trying to flee make sure to have their cell phones on them ... sounds a bit more modern to me (^_^;; Personally, I think it should work just fine with a modern setting, the rules are flexible enough.
Secondly, I am confused about the darkness level rules on page 30. At first, the example describes that the darkness level rises during a scene based on a trigger event. Then, we get the rising darkness table, which seems more like a table for a one-time rise between scenes. The way the table is written, DL rises by up to 2 once between scenes. Otherwise passing 1 would be worse than passing 2...
On the blog, a rule named It's Quiet, too Quiet or some such is mentioned, but it seems to be missing from the final rules.
BTW, I really like the PEF and combat rules for Lovecraft's Revenge, as you do not really need a battle board/table at all: After all, PEFs are all encountered one after the other (so no maneuvering on the table to see whether you encounter a PEF or not), and combat also only has ranged distance and melee, which is even simpler than some things I have seen in RPGs that do not require miniatures/a table to be played.
Although I am not really sure about a Lovecraftian campaign. It is not really his style, you know (^_^;; However, if there was a more generic ghost/monster variant, I see some potential there.
All in all, good job, and I am looking forward to the dreams supplement.