Rules for Applying
Applications for characters break down into three groups:
PENITENTS: The majority of characters will probably fall into this category. They are the new arrivals in Silent Hill, drawn here by circumstances beyond their control. They have yet to be judged, and are awaiting trial by the town. Their powers are severely limited, and their weapons have been taken, to be offered back at a later point. As they progress through the game, a penitent character could slip into the next category, which is Damned, below.
PENITENT POWERS/TRADE-OFFS:
Penitent Characters start off with almost no supernatural power. Nearly any offensive or healing ability will either be severely curtailed or gone all-together. If it is supernatural in scope, it is subject to being weakened. This does not apply for abilities that are naturally occurring in Normal Silent Hill, i.e. ability to see in the dark, preternatural hearing, and the like. Any weapons the character has will be stripped from them at the beginning of the game, though there is the opportunity to earn them back.
The benefit of being a penitent is that supernatural effects can be shaken off more easily, as the town has had less time to sink itself into the characters mind. Penitent characters are less likely to encounter monsters in "Normal" Silent Hill, more able to find rest, and are likely to find beneficial items such as first-aid kits, health drinks, and extra ammunition.
EXAMPLE: Cloud Strife, while not always behaving in the most righteous and considerate manner, is generally a decent person. The many tragedies in his past weigh his soul down, troubling him on both a conscious and subsoncious level, drawing him to this town. Finding himself without materia, sword, and that his mako-enhanced powers have been severely weakened, he can only rely on his battle-hardened senses to keep him safe through the nightmares borne of the town, searching out what his heart is looking for.
DAMNED: This is a group of characters that are either originally from the Silent Hill universe, or are characters that are a little more "experienced" with damnation. Characters non-native to Silent Hill have reached the point of their judgment, and have decided to flee. These characters have more of their powers intact, particularly at night, and are more likely to have their weapons at their disposal. Their connection to the "Nightmare" world allows them to tap greater power, but at a cost to their sanity.
DAMNED POWERS/TRADEOFFS:
Damned characters have some of their supernatural powers returned to them, allowing them more mastery over the world. Fighting monsters is easier for them, as is their ability to determine their location, relative strength, and how best to defeat them.
The downside, however, is that Damned characters have lost their hold on what is generally agreed upon by penitent characters to be "reality." The town warps itself to create personal hellscapes for the Damned, seeking to separate the character from the others. Damned characters do not find as much rest in Silent Hill as Penitent characters, and are more likely to see monsters during "Normal" Silent Hill.
EXAMPLE: James Sunderland seeks to be punished after the death of his wife three years prior weighs heavy on his soul. While not having been born with special powers or trained in the ways of magic, he inherently understands the workings of the town and the puzzles and monsters that lie within, all the while stubbornly refusing to recognize the truth behind his insight behind them.
MONSTERS: Monsters are just that; monsters. They are part construction of the town, part separate manifestation of a Damned soul that was judged to suffer for all eternity. Fully powerful, these creatures delight in nothing more than stalking and damning others who are trapped here.
MONSTERS POWERS/TRADEOFFS:
Monster characters are fully powerful, and utterly well... monstrous. Manifestations of the nightmares of the other souls, they get to torment and frighten other characters.
Monstrous characters can not, however, cross into "Normal" Silent Hill. When applying for a monster character, the player must also apply for either a penitent or a damned.
Example: Ansem, the Seeker of Darkness, lives free now from inside the heart of the Keybearer, Riku. His goals, while difficult for heart-bearers to understand, involve taking the hearts from anyone he can come across, absorbing them into himself. Even weaker to the the light than before, he finds he must hide from the light that all living things would consider gloomy.