Alright, so here's some questions for you guys:
1) Should I tone down the number of magic items/alien artifacts in the keep?
2) Where should I set the keep and the caves on the big hex map?
3) Any suggestions for converting the caves of chaos?
4) What should I do with that weird hermit guy?
5) Should I change the lizard men into deep ones?6) Should I use luck points? Are they too meta-gamey? Are fighters cool enough in Carcosa without that extra help?
7) Can you recommend some music for my Carcosa playlist? Make it weird.
1) I say nay. Just weird them up a bit like you did converting the +1 plate to power armor.
2) Perhaps the keep borders the mutant-filled radioactive desert in the north? Really any geographical feature that you designate as being more monster-filled will do.
3) All the humanoids become men of various colors, the dregs of their society, united by the sorcerer who runs the Shrine of Evil Chaos (which I would rename if I was you), the Ogre, Minotaur and Meduse become hideous mutants. I'd probably make the medusa into a woman whose entire head is just a mess of snakes, no human face at all. Maybe the snakes spit petrification venom. The skeletons become Terminator robots.
4) Keep the weird hermit guy as is. Maybe make his pet something different.
5) Sure, sounds perfect to me.
6) Fighters don't need any particular mechanical help, in my opinion.
7) If I recall correctly The Residents' album Hell! had some pretty creepy 'anti-music' tracks that might work.