On the DVD commentary for another Stuart Gordon movie called From Beyond, Gordon and Brian Yuzna mention that they had planned to make an adaptation of Dreams in the Witch-House in the 1980s after the success of Re-Animator. From Beyond ended up getting made instead.
This movie is the second time Ezra Godden plays a character who wears a 'Miskatonic University' T-shirt in a Stuart Gordon film. The first one was Dagon (2001), in which they both were involved.