This sort of idea but as if it was viewed normally rather than being mirrored letters. I was also thinking that the writings not only conveyed through neon signs but on the walls to be a bit more menacing with things that are strange displayed on them rather than the normal open sign.
The other idea that I have is confining the scene within a childish bedroom. Again with the use of mirrors but I am not quite sure as to what I'm going to have the mirrors doing. For example I was firstly thinking of having the mirrors/mirror display a horrifying alternate to the childish surroundings like a pretty dolly reflected in the mirror as a decaying, stained one and the use of shadows to make normal things look menacing in their silhouettes. Or just a bedroom with mirrors with silhouettes of people pressing against them
Neon sign - http://farm5.static.flickr.com/4071/4430799513_d24e708389.jpg accessed on 8/12/10
Shadow figure - http://s2.thisnext.com/media/230x230/DEATHLY-SCARY-SHADOW-SHOWER_9D3F799A.jpg accessed on 8/12/10
Scary girl in the mirror - http://www.luciddreamgirl.com/wp-content/uploads/2009/08/scary-mirror.jpg accessed on 8/12/10