This is interesting... a while ago, back when 2k3 first came out, we were creating a Silent Hill game called "Welcome to Silent Hill." It was featured on Digital Necropolis at the time, but eventually died out with the rest of that site.
Having said that, for making a Silent Hill-esque game in 2k3, I
cannot more highly recommend using tilesets from Suikoden II and modifying them as-needed. The textures are phenomenal. Any further tileset graphics that you might need could be worked on by a tileset artist, I'm sure.
Of course, none of us are any good at graphics editing and such ("us" meaning Fall From Eden; trying to disambiguate that), so it seems that we'd be unable to really help in the ways that it seems you would require. When it comes to storyline and such, however, we could provide
plenty of assistance if you ever need it.
Good luck.