I remember reading a science-fiction-y story in probably the late
50's.  THis time I don't recall the name.   It was a story about an
island (let's say Manhattan) that had been captured by aliens, and was
being taken off somwhere, but without disturbing the inhabitants, who
were in effect hypnotized when ever they left the boundaries of the
place into thinking that all was well.  My recollection, not
necessarily correct, was that it was illustrated by a picture of a
long, high, featureless, dark red wall, set against a featureless
plain.  Any ideas?

I remember a storyline on "The Outer Limits" that is like what you described.

Hi again brad23ny,

I found the episode description of the episode I'm referring to. 
Maybe this story inspired the episode?  (It's made in the 1960s and
was remade in the 1990s):
1960 version: http://www.theouterlimits.com/episodes/season1960/6029.htm
1990 version: http://www.theouterlimits.com/episodes/season3/308.htm

secret901-ga