The Fatal Frame series is some freaky shit. My husband and a friend of ours were playing and they REFUSED to let me turn the lights on. I got so freaked out I actually had to leave the room. >.>
Silent Hill is another good one. I was able to beat the first game, but I swear, the better the graphics got, the freakier the games got. I only ever got about halfway through Silent Hill two. The part that did me in was the part where you're walking down this narrow hallway with Maria tagging along. (Hospital, I think?) the camera is wonky, and just as you turn the corner, pyramid head turns the corner right behind you. I screamed and threw the controller. o.o; The was the end of SH2 for me. SH3 kicked my ass right from the get-go. Turn it on and BAM, you're already in creepy Silent Hill. I just stared at it for a minute, then passed the controller over to my friend. :P I can WATCH people play those games, but I can't play them to save my life.
We have RE4, and I could probably suck it up and play that if I ever grow a pair. So far, I've just made my husband play so I can see what happens. XD
I am the ultimate wuss.