RIFT? Have you not yet decided? Then perhaps you'd like to consider Draumheim, City of Nightmares! Don't worry; it's just a name. It's really more of a collection of eldritch horrors and faceless creatures shaped of dread. Some of them are even downright pleasant!
Draumheim is home to the Onir, creatures of dream born in the unconscious thoughts of Telara's residents. Some of them are perfectly happy and well-adjusted people who will be happy to make your acquaintance, while others are just as nightmarish as their place of residency would imply. Lord Arak has taken much of the city, however, raising new nightmares and taking control of the local government through violent means. As you can imagine, that means it will be up to the player characters to set things right. So get ready for a visit to the city of nightmares itself! (For the record, Silent Hill is just a small town of nightmares.)