Space is ever a problem in Arkham, it truly is--I've taken to clearing out one room of the house and playing on the floor, that way I can keep the door closed whenever I need to 'Pause' a game. XD
As for Dunwich, it is one of those games that can go either way--you either will wind up working in the sleepy little town, or you won't. No gates opening there means you've no reason to go, since there will be no monsters which, in turn, means no Horror. It sounds like you had fun though, Dunwich or not, and that is what is most important!