Explore the main area of the monastery's theater. Notice the retractable ladder on one of the walls. If you do not have a hook on you, go back to the classroom and get the one that's leaning on the bookshelf. Otherwise, use the hook to get the ladder down. Climb the ladder. Grab the fireaxe from the right of the door, then open the door and enter.

You need to get the following two items:

Lever - Operates the backdrop mechanism
Easy Difficulty -The lever is just beyond the door
Normal Difficulty - Search the shelves in the room for this item
Hard Difficutly - The lever is on the first floor of the theater, on some toppled shelves close to the stage.

Vinyl Record -
An old gramophone record, slightly scratched
Locate a desk, and open its drawers to get the record.

Exit the room, and go to the control area, the balcony with the spot light. On a small desk with a lamp, find a mystery item, a script/technician's notes for a play of Hansel & Gretel. Notice the panel with the cue lights. These lights probably cue the stage technician. This is a PUZZLE.

Silent Hill Downpour Cue Lights Puzzle Solution

Hansel and Gretel Cue Lights Puzzle Solution
There are 7 lights, numbered from 1 to 7. There is a tag under each light. Only a few of the tags are legible. The harder the puzzle level, the less tags will be legible. On Easy, three tags are legible: Lights (#1), Music (#2), and Spotlight (#3). On normal, only two tags are readable - Music (#2) and Spotlight (#3). On hard, only the Spotlight (#3) tag is legible.

You need to perform certain actions in the right order. When you perform the correct action, the light will advance to the next number. Perform some preparation. Place the Vinyl Record in the Gramophone, and insert the lever you found in the slot to the right of the spotlight.

The hints are in the Technician's manual. The instructions are in capital letters (on hard difficulty, the instructions will not be capitalized):

Cue #1: THE LIGHTS DIM
There is a main switch, close to the ladder. Flip it to turn the house lights off (LIGHTS)

Cue #2: MELODY BEINGS TO PLAY
Go to the gramophone, and rotate the crank to play the opening music for this production (MUSIC)

Cue #3: LIGHTS ON CENTER STAGE
Turn spotlight on and aim the light beam at the center of the stage (SPOTLIGHT). You will here someone clapping.

Cue #4: DARK FOREST
There is a winch to the left of the spotlight, use it to drop the forest setting onto the stage. The winches raise and lower the backdrops.

Cue #5: STRANGE HOUSE
Use winch to the right of the spotlight to drop the strange house setting onto the stage. You will hear some more applause.

Cue #6: RAIN
Locate a wooden cylinder and spin it to create special effects: rain. Make sure to crank the wheel enough so that the rain starts.

Cue #7: THE STORM WORSENS
Locate a hanging metal sheet. Strike it to create special effects: thunder

Make sure to follow the actions in the order written in this guide. Doing any action out of sequence will reset the puzzle.

Once you complete all seven cue light actions in order, the play starts.