Yeah, I'd noticed the lip-sync issues too. I think it's the kind of thing that we've started to take for granted on most modern games, but when you see it again, it's a crashing reminder that this is what games used to be like, so it's odd that such a high profile release couldn't have got it better.
I've just got to the start of chapter 5 myself, like some others though, I'm glad I just rented it, as I don't think I'd play it again. It is very linear, but it's still good fun.
I think the reason it's not scary is that you get really big audio clues every-time an enemy appears, or the camera zooms out to show you were they are coming from.
I'm still not even sure what I'd describe the game as....
You can see a lot of Max Payne in it, being that it's from Remedy, especially for how good the story telling is, but also the fact its quite linear with where you can go.
It also reminds me though of both Silent Hill and the Lost: Via Domus game, however it doesn't really have the same backtracking or puzzle solving, this is much more of a shooter game where you just keep going.
I might try and finish it today, but its defiantly a game worth playing.