Rabbit in Silent Hill 4?

Personally, I think that Eileen can not see the stuffed animal, that it's not really there (the real world) like the hand prints you can see when you look out of the peephole of your front door. When Robbie turns to point at you, I think it's just suppose to represent a change of pace and show you that your getting further in the game. As for the storyline, look up YouTube, lots of Silent Hill fans.