The Silent Hill series is great, my favourite game series after Metal Gear Solid (as if you couldn't already tell :P). Silent Hill 2 is probably the best Survival Horror game I have ever played (it was also the first). It was a very scary game and the storyline sucked you right in, made you really want to find out the true meaning of why James was drawn to the town (which is then revealed later on in a great plot twist that I just wasn't expecting).
Other horror games I have enjoyed have been the Fatal Frame series (scariest games of all time IMO), the Resident Evil series (never enjoyed these as much as other horror games, though RE4 was kickass), The Suffering duo (a great pair of horror shooters and they really ramp up the gore levels :D) and Obscure, which is a fun little co-op title.
I also really enjoyed Clive Barker's Jericho. It thought this was very underated and that some of the reviews were pretty harsh. It had a great story (as it should do, if its being penned by one of the horror genre's greats), a wicked macabre art design and a lot of variety. I loved being able to switch between the six squad members and use their different powers and weapons (guiding a sniper bullet in into demons heads in slow motion never gets old :D).
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