Old Testament Afterlife

Something that has always intrigue me was the old testament conception of death (before David at least). From reading certain Psalms and Job you see that the idea of death was similar to that of Gilgamesh and the Greek Hades. We see that when someone died they expected to be in the grave forgetting everything and/or in some sort unpleasant situation. But then I read:

Therefore did my heart rejoice, and my tongue was glad; moreover also my flesh shall rest in hope: Because thou wilt not leave my soul in hell, neither wilt thou suffer thine Holy One to see corruption.
(Acts 2:26-27 quoted from Psalm 16)

I it was clear they did have a different conception of death then we do. We see David was glad realizing that hell wasn't his final abode, but that he would be resurrected.

Or he knew of the resurrection and they still dreaded the time that their soul would spent in the grave, Sheol.

I'm not being dogmatic, just trying to understand the Hebrew mind before Christ came. I see that many of the promises to Israel was earthly, though they can be translated to be spiritual "ideas", they are promises of physical prosperity.

The Spiritualizing of the law we see in the lives of men of Faith and in the New Testament

Application:Thank the Lord that you will be resurrected in Christ on the last day and that we live under the new covenant and not under the law.