Kind of. The things around us sometimes keep up new appearances (like the creepy monolith that used to be a building, the building was destroyed one week, didn't come back, and a few weeks later, became a creepy monolith). For the most part, we reset back to our rooms, in whatever clothes and state we were in when we first arrived here - the few exceptions have been either magical in nature or due to the week's latest setting.
Wasn't there a paper airplane about this?
We've gotten kind of complacent about the reset thing. If someone dies, generally, they're alive again at reset. 7 days to the minute. I've been here for thirty-something weeks, but I still don't understand why it's happening. There's no pattern I've been able to determine.