Hey Paul - Very fun song, and overall I like the performances. I agree with Cristina that the vocal levels are inconsistent and jarring at times, something that can be easily remedied. The guitar riffs are cool, somewhat reminiscent of J.J. Cale's (and Clapton's cover of) "Cocaine". The guitar tone is a bit 'sludgy' sounding, could be crisper and punchier, but personally I kind of like that tone for some things, including this.
Yes, and I think there's an opportunity there to add some really interesting reverb or flanging or something, a weird effect, almost like a dream sequence. It seems like this is the "bridge", and a 'reflective' point for the lyrics. The 'echo' thing there is cool. Some effects (reverb with very little pre-delay especially) could tone down the vocal prominence too ... though you probably will need to take down the level just a bit as well.