So I was able to run all of session 1 in 4.5 hours. I only had 3 players, which I think helped. I removed a lot of the dream gate subplot and shortened it to 2 days total (mostly bc the players were moving along at a brisk pace). In the end, they still had the majority of the clues they needed and got them through roleplaying and not me just handing the clues to them.
I do want to say that the reason I was hoping for shorter episodes is that in playing at the gaming pub I play at, there is no guarantee I'll get the same players each month. Being able to finish in one session means that its easy for new players to just jump right in. In this particular episode, I didn't feel there were any real good stopping mid-points where I and the players would feel satisfied in stopping and ready to pick up at the next game.
Overall, I enjoyed the scenario and am honestly looking forward to running it at its normal pace. I'm thinking of doing so via an online game.
A couple criticisms of the scenario. First, there is a lot for one Keeper to handle. There are a lot of NPCs to keep straight - and this will only continue to grow. I hope this is addressed in later episodes, because keeping track of 8 NPC students and the multitude of townfolk was not easy. I made due and focused more on the townsfolk and fortunately the PCs went along with this. They were happy to distance themselves from the rest of the group and go off collecting stories on their own so it all worked out.
Another thing...the Gismend River is mentioned multiple times - in a clue, in The Accident, etc. However, its not on any maps that I could find. I initially thought that it was the Deerfield River from the town map, but realized in game it was not. I still made it work, but with something so prominent in the game, I would have liked to see a better map of the area with it on it.
Outside of that, the game ended well. My PCs have no clue what is going on, lost some SAN, and are disturbed by the town. A successful game in my book.