Silent Hill Shattered Memories, just a crazy good game, a lot of game designs I really wanted in a horror game went into it, with a few tweaks it could be perfect.  The way it profiled you to a T was crazy, good job there on the designers part.

Resident Evil 2 for best combination of being scary and being a great game.

Resident Evil 4 for just being a great game.

Fatal Frame IV for just being scary (my 1st FF game, most say it's the least scariest in the series)

Bioshock! *Snaps fingers* I knew I was forgetting something. It's not as good as Resident Evil 4, though, but it deserves an honorary mention.

Yup. Hell, I'd even say, that just a single Iron Maiden was harder to kill than the final boss.  ('Twas absolutely pathetic, especially in comparison to the penultimate boss battle.)

What made it hard for me, was that I'd always panick when I'd see one (the noise it made was creepy, plus the fact that I had to use the special scope to kill it and I had to stand still).

And I can't beleive I forgot to mention BioShock. I'd call it more creepy, rather than scary, but it was definately horro-themed (and the story was amazing).

Anyone here play Vagrant Story and think it was scary.

i thought it was because of the lonelyness of game, you would face enemies stronger than yourself. the music was haunting and the level design would make you feel lost in a city of nightmares. i especially loved it when you would travel into the abadonned Undercity. not to mention there was a rich history to the city of Lea Monde that would make you feel immersed in the dark hallways and web of dark storytelling.

Silent Hill 2

Resident Evil 1 and Silent hill 2.

Two very different types of horror games, both equally amazing.