This is my location guide that will fully explain where to get all of the letters in the "Otherworld". I'm going to list them in the order in which you'll find them, not numerically. Some, such as the ones in the village, will be in no specific order. However you want to get them is up to you.
Otherworld Part 1 - Chapter 2 in the Chapter Select Menu
Collectibles in this level: 13, 14, 15, 16, 17, 18, 21, 26, 27, 28, 38, 63, 66, 67, 68, 79, 80, 87
Trenches:
Letter #13 - When you come out of the first trench go straight ahead and you'll see a ruin of a building. It'll just be parts of the walls, the rest of it is missing/destroyed. When you get there look inside of what used to be a house and you'll see a secret door on the ground(it's wooden). Shoot the wooden door and climb down and grab the letter.
Letter #14 - From the end of the first trench, make a right and stay along the outside of the trench. You will come to a ruin of a building and the letter is in the corner on the ground, inside of the ruin. Remember, it's along side of the trench, somewhere near the middle.
Letter #63 - This one is on the pedastal of 'Pestilence'. In case you don't know what 'Pestilence" is, it's the large birdlike creature that is tied to the cross. You can get a look at it from the binoculars inside of the trenches.
Letter #38 - This one is located on the first German Bunker after you pass "Pestilence". To get to this one you have to get through the bunker. Upon exiting the bunker through the hole that your kamikazie darkling made, make a left and follow the outside of the bunker(the rounded part) to the otherside. Now, you'll be overlooking a cliff with the bunker on your left. On a small ledge of the bunker will be letter 38. Use Creeping Dark to get it.
Village:
Letter #15 - After you reach the allied bunker they will point you to the sewers that lead to the Village. Once inside you'll see a solider playing a harmonica. The letter is to the right of him on the ground.
Letter #66 - Once you climb the ladder to the Village make a right and go into the little shack to find letter 66 on the floor.
Letter #65 - Right before you get to the bridge that leads to the Hills, make a left and climb down the ladder. This letter is on the ground in front of you.
Letter #16 - Looking at the bridge that leads to the moutless horse('Famine'), make a right and look for a ruin of a building thats along the waterfront. Inside the ruin, on the floor is letter16. The ruin on your left going from the horse to the church.
The Hills:
Letter #87 - After crossing the bridge from the Village you'll be in some sort of building. This letter is on the platform thats above the Bell that blocks your path. If you're down by the Bell then you can use Creeping Dark to get it.
Letter #80 - From the building head straight up the the man on the upside down cross. Before you get to the man, at the base of the hill there is a trench on your left. Inside the trench is letter 80.
Letter #79 - From the man on the cross turn right roughly 45 degrees and head out onto the flat ground. On your way out you will see a ruin of a house on your left. Pass that one up and keep going in a north east direction. You will come to another ruin of a house but this one is a lot larger than the first one you saw. Inside the ruin is a fireplace and inside the fireplace is letter 79.
Sewers:
Letter #28 - After you get back from the Hills and talk to Anthony(2nd time) he will point you into a secret door that leads to the sewers. After you enter the sewers you will see a small archway in front of you. As soon as you go past the archway the letter is on your left on the ground.
Letter #17 - When you get into the sewers you'll come to a door that you can't open because you need to drain the water. Go up the 2 flights of stairs and make a right. It's a dark dead end but there will be a railing there. Jump over the railing and on the landing is number 17. You most likley won't be able to see it so just believe me and jump over the railing.
Letter #67 - After you drain the water you'll be able to open the door downstairs. Open the door and instead of going straight at the intersection make a left, go into the big room and it's on the ground to your left.
Letter #18 - It's in the last room in the sewers just before you go outside to the train/canon. If you are looking at the door that leads outside it's in the back left corner on the floor.
Canon:
Letter #27 - When you come out of the sewers you'll see the big train/canon. Just go straight, passing the train, until you get to a large gate. It's on the right hand side of the large gate, on the ground.
Letter #26 - This one is on the outside of the train/canon. Climb to the top of the canon, standing with your back to the hatch that goes to the operating room of the canon. Now use your Creeping Dark and slither along the right side of the canon and go to the top. From here look down and the letter is sitting on a little ledge below you. (This one is a little hard to explain so if you have any questions feel free to ask).
Letter #68 - Go inside the train and into the second room on the bottom floor. The letter is towards the front of the train underneath the catwalk. Use your Creeping Dark to get it.
This concludes part 1 of the "Otherworld".
PLEASE HOLD OFF ON POSTING IN THIS THREAD UNTILL I FINISH PART II