General interpretation is that Mystery Woman is the Kyuubi.
If we say that "your door" means "the valve that you can open to access the Kyuubi's chakra" then this implies something interesting: Naruto is on the wrong side. The room he's in is the inside of the jinchurikki seal. The window is probably Naruto's mental representation of an interface for communicating with the Kyuubi without having to open the valve and risk letting it loose.
I suppose you wouldn't want a being of ultimate Chakra Reserves skill to be able to do ninjutsu inside their seal. But it is also adequately explained by "this is all in your head, and you're having a psychotic break", so not terribly helpful at distinguishing whether Naruto has ended up mentally inside the seal.
Okay, simple enough so far. Someone associated with Earth (Kakuzu? Zetsu?) has made disparaging comments regarding the skill level and fitness to be an Akatsuki member of someone who is either immortal (Hidan? Kakuzu? Sasori? Madara?) or is very lethal and thus represents Death, but is literally absent themselves rather than being a person for whom death is absent. The next part suggests the latter, and that that person is Itachi.
If we say the torturer is Itachi using tsukuyomi, then the window could be Naruto's eyes. Alternatively, the window could be the window on the door, meaning that Naruto is the daimyo (being literally "safe in his bed" during this conversation). Then the chancellor could be the Kyuubi (unlikely, I think, but plusible: a chancellor deals with currency -- which could be a metaphor for the chakra the Kyuubi gives to Naruto), or it could be Minato (either Minato's mental copy living in the seal or metaphorically in that Minato's handywork of the seal is too robust for Death to break through).
Easy enough. Naruto is the daimyo. The castle is Naruto's body. Naruto tried to make a rasengan just now (a jutsu is chakrAI acting like a servant for the ninja), but he couldn't because he's inside the seal -- his "body" is a mental representation, not a real body with real chakra parts, so his ability to interface with chakrAI isn't where he expects it to be (he expects it to be inside his body, but he's not actually living in his body right now so his chakra system isn't there so chakrAI doesn't respond).
Little Turtle is the Sanbi. Naruto didn't get the mizukage, but he did get the other Mist jonin.
Akatsuki showed up, and Itachi mindraped him, and they got away with both jinchurikki.
Naruto broke under torture and had a psychotic break and desperately stuffed his mind inside the jinchurikki seal.
Naruto hadn't reintergrated all his Shadow Clone forks yet, so as each one breaks they're all going through the same process of going insane and stuffing themselves inside the jinchurikki seal.
The kyuubi is trying to keep Naruto from going irreparably insane, but the Shadow Clones are making things harder because if one of them gets too upset then it spills over onto the others.
"Sanity is subjective." Which given the kyuubi's other comments about "perception" should indicate that she really doesn't know what she's doing here. RIP Naruto's brain.
Okay, that clarifies some things. The Absent Death is an immortal, not a deadly person who is absent. The door they're carving at is the door to the room is the seal. The papers thrown to the ground are AD's research notes trying to figure the seal out. They're crumpled and thrown to the floor because AD can't figure it out. AD is deciding to just start torturing Naruto physically and see if that does anything helpful.
If AD keeps torturing Naruto then Naruto will die and the kyuubi will go with him.