You haven't said what it is that makes it creepy, so it's not easy to suggest how to improve it, but maybe it's the lighting? Haley has good suggestionsMake it light, warm and comfortable, and shoo away the spiders and rats for the evening (though they'll be back).
you're way overthinking thisJust because you want something doesn't mean you're going to get itSounds like too much trouble for just a few hoursWhy don't you all just go out for a meal, or a pizza party, or go to a place where you can bounce on balls, climb a wall, try to ski or something interesting for a couple of hours.
If you are using acrylic yarn, you can't dye itIn fact, most of the synthetics are going to be really hard to dye at allIf it's animal fibre, you can use any acid dyeIf it's plant fibre, you are going to use a fibre reactive dyeThese are not the same, and they don't work on the other fibreIf you use union dyes, you can dye either one of them, but you get some waste of dyes that way tooUnless you know what material your yarn is made from, there is nothing more we can tell youThe directions for each type of dye is available on several web sites.
