I havnt played yet...just reading threw the rules and i see nothing saying that 2 people cant play this....is there a reason for the 3 player restriction?

Not really. You might want to play with one extra suspect, though.

The thing is that the game probably isnt't balanced very well between the different investigators. In the 3+ player game this is regulated by players gangin up on the leader. In a two player game this mechanism is missing. So technically it works, however I am not sure of the balance.

I see. Thank you both I did notice that once one of us was a head it was nearly game over for the other person.