this story is very exciting and original! nice chapter!
BUT how did malfoy know that harry was in that compartment??? o_0
nobody knows how he looks like! sooo how's that possible?? even at the sorting it was HYDRA evans??? i thought "hydra" was a nickname? shouldn't it have been harry evans?
harry should be either in ravenclaw or slytherin, they would both fit his personality in this story...
BUT i would recommend slytherin! ambitous and cunning, resourceful and not short about using a threat against the hat...and if he's in slytherin, you could split the house in 2 fractions -the death eater children with malfoy (animosity started in train) and neutral families and harry-, ron's already annoying soo it would be easy to continue this in a very close-minded gryffindor manner...
will you put hermione in gryff?? i would do it because it's her courage of a logical person to enter a world of magic...
they didn't have much contact yet, but her in gryff and him in slyth would be also a good possibility for a strong friendship above houses...maybe in later years something more... (hp/hg-shipper: hint, hint) =P