Spooky! This one begins with some creepy pads and sound design. There's some string melodies in the background but I'm not sure they're echoing the source. At 0:30 we get a lead of sorts and some movement on the bass before we get some chords on whistle-ish instruments. At 1:07 we get the source's main arpeggio line on many different instruments for a while, until at 1:44 things settle down. Soundscape is really cool, every instrument sounds great and I love all the effects on the background. At 2:19 we get a new section that's quite fun and at 2:44 we get the main arpeggios back alongside some original writing. This section gets a bit noisy with all that's going on, makes it hard to focus. At 3:22 we get a repeat of the main arpeggio/melody of the source. Melody is on a sitar-ish instrument that doesn't cut through the mix all that well. At 3:51 there's a break, then The Shining reference and the track ends.
What a spooky/tense track! Production is very well done, the mix is mostly very clear (only a few spots with a bit too much going on) and the sample choices fit the idea perfectly. I particularly loved all the additional sound design efforts with all the SFX and transitions. At some points, especially towards the "climax", the production reminded me of the Zerg Themes from Starcraft, maybe it'd be interesting to try cover one of them on this style!
Arrangement will be the main point of contention here. While the track's structure is good, with enough build-ups and breaks to keep an interesting pace, source usage is quite on the edge. As per your own write-up, source is clearly used from 1:05 to 2:18 and then from 2:40 to 3:50, for a total of 2 minutes and 23 seconds. Since the track lasts 4 minutes and 19 seconds this barely scrapes the 50% "unofficial rule" but I don't think the source is really dominant on all those sections. In particular, from 2:40 to 3:22 while you can definitely hear the main arpeggios I don't really think the source is the main focus so I can't completely count that part as dominant source usage.
Overall, while this is a really cool arrangement with great production, I agree with proph that source usage isn't dominant enough for this to pass. I think making source usage clearer from 2:40 to 3:22 or adding some more direct quotes of the "melody" from the source in earlier parts of the track would help.
NO