>1. how in thee fuck did gimpy gator-armed burnt larry dig a
>six foot grave so fast? with one arm? and no help?
>
>2. nobody saw that shit? a limpy gimpy freddy kreuger
>lookin'ass nga digging graves in the suburbs? in broad
>daylight? please. and j. lange doesn't count
>
>3. my pregnant-with-my-baby sidepiece just got el-kabonged
>with a shovel on my porch. i know! i'll let a convicted
>murderer bury her in my front yard! genius!

I'm getting the feeling that the house haunts each family member in specific ways... ie, different spirits show up for different family members/people (like the dichotomy of the maid looking different for females and males). In this particular case, I think the old dude is dead and can only be seen by McDermott. It would explain how old dude knows so much about McDermott's personal life, and why he's the only one that McDermott is able to be so free with regarding his own personal demons.

As for the grave, I just figured he dug the whole shit himself. He got drugged and/or passed out a few times it looks like, and he ended up out there each time. I'm also guessing that he's the one that knocked Kate Mara's ass out with the shovel, and his brain "rationalizes" his innocence by thinking old dude did it. Basically the entire existence of the old dude is an outlet for him to behave how the house WANTS him to behave.

I could be wrong though.