As he journeys through the streets of Silent Hill, James will come across a Jukebox puzzle inside Neely's Bar, which he'll mark on his map. Solving this puzzle requires multiple steps, and is your key to getting the key to the back room of Neely's Bar, as well as progressing in general. Here's how to solve the Neely's Bar Jukebox puzzle and progress in Silent Hill 2.
How To Solve The Jukebox Puzzle
Solving the jukebox puzzle in Neely's Bar requires finding two parts of a vinyl, and then placing them into the jukebox inside Neely's itself. You'll then need to place a key and coin into the jukebox, allowing you to actually play the vinyl.
Fixing & Finding The Vinyl
To start out, you'll want to find the two vinyl pieces. You'll find one half of the vinyl sitting around Neely's Bar - it's still stuck in the jukebox - but then you're left looking for the other half.
A nearby note sitting on the bar in Neely's will tip you off that the best place to look next is the Groovy Music store. Locate it on your map and head inside; you'll find not only helpful items like Health Drinks, but also the second half of the vinyl on a table. Also on the table is some Vinyl Glue, your key to fixing up the vinyl.
Now, you'll be introduced to combining items. The game will explain how to do this, but you'll need to use the vinyl glue and both halves of the vinyl. Then, you'll have the full, fixed vinyl in your inventory.
Finding the Missing Key
You've now got the vinyl that you need to play inside the jukebox, but you'll find that the jukebox itself is still missing a '2' key. As it turns out, the disc is placed in the '2' position, so you'll definitely need that key.
You can find it by heading into the Saul Street Apartments. One of the apartments will have a hole in the wall, which James will stick his hand into.
After sticking James' hand inside, he'll reluctantly pull out a '2' Key and add it to your inventory. You'll need this for the jukebox, but you're not done quite yet - you'll need to take one more detour before heading back to the start of the puzzle.
Finding the Neely's Bar Coin
Your last stop on the quest to finish the Neely's Bar jukebox quest is the Texan Cafe. If you've been paying attention and picking up memos - including the one in front of the Woodside Apartments, if you've stopped by there - you'll see several references to that location.
Head inside the Texan Cafe to find a cash register. Turn the key and then press the button to cause the cash register to open up, granting you the Neely's Bar coin.
Playing the Vinyl in the Jukebox
Now that you've got everything you need for the jukebox puzzle, you can head back to Neely's bar and insert the vinyl. Then, put the '2' key in the spot where a key is missing. Input the code 'C2', then insert the Neely's Bar coin to activate the jukebox.
This will trigger a short cutscene in which James will listen to the song that plays. After a short time, the record will malfunction - but the Neely's Bar Key will pop right out of the jukebox, allowing you to open up the back room. This back room leads to a whole new area of Silent Hill, allowing you to progress onwards.