Okay, so I just watched it, and I think you did a great job making us feel like we were watching an old VHS tape. Your TM Productions intro, the opening/end credits, the transition into/out of Nancy's dream in the tub really give you the feel that this was some low-budget, shot-on-VHS, straight-to-VHS movie. The downgrading of the picture quality and adding video noise also helped, and I thought the "rolling" of the video in that one scene and having the word "TRACKING" pop up was a nice touch. Aside from re-rendering in the proper aspect ratio I'd say the only thing you might want to fix is the end credits because they move along at a snail's pace.
Note: Approved only valid if re-rendered in proper aspect ratio.