I know that Uboachan has been making a fangame, but I decided that I'd post mine too.
Basically, you play as Frank, a boy, much like Madotsuki. He has gone out of school and only gets out at night, when nobody is in the street.
However, you can't go very far, and the only thing to do is to go to sleep. By sleeping, you access the dream world. Get out of your house and enter the city. However, things are different. The whole city is more violent (yet it still feels very lonely - I was inspired by LSD's Violence District). You have a set number of HP which you can increase by finding certain items scattered throughout the dream world. Look within the dream world for effects. Some of them are just graphics swap, others can be used.
Sounds familiar? The game uses Cave Story's engine and the same style of graphics. It's basically a mash between Cave Story, Yume Nikki, and LSD (without the linking, of course).
It changes from Yume Nikki in the way that if you get hit too much, you will pass out and wake up. Some effects are guarded by "bosses", so level up your offensive effects to stand against the bosses. It adds a twist to the gameplay and makes it challenging. In Yume Nikki, all you had to worry about was the Toriningen, and once you got Medamaude they weren't a treat anymore.
So, yeah. I'd gladly post screenshots, but paint is broken on this comp. I'll try to get some once I get it to work.