Unfortunately, there aren't a lot of offline co-op games out there, and even fewer when you take FPS off the table. And of the games that are available, most of them are of questionable quality. Which annoys me to no end, because I'm a hardcore junkie for offline co-op via LAN (preferably) or splitscreen, and I'd kill to see more high quality co-op games made.
Anyway, offline co-op games that come to mind are:
Resident Evil 5
Army of Two / Army of Two: The 40th Day
Kane & Lynch / Kane & Lynch: Dog Days
Ultimate Marvel Alliance 1 & 2
Lord of the Rings: Conquest
Lord of the Rings: War in the North
Dynasty Warriors series
Lost Planet 2
Littlebigplanet 1 & 2
Rachet & Clank: All 4 One
Sacred 2: Fallen Angel
I'm hesitant to recommend any of them, because I don't know your personal gaming preferences and for every person that loves a given game there will be at least a dozen who say it's absolute rubbish. But that's a partial list for you to look into.
As for Hunted: The Demon's Forge versus Dungeon Siege III, I haven't played either of them, but I've heard more positive things about Dungeon Siege III than I have about Hunted.
thedarklinglord
I have most of the Dynasty warriors series but I kind of prefer the samurai warriors version, War in the north and sacred 2 seems interesting. As for my preference I'm more into the hack and slash type of games for co op since with any shooting games there seems to be only one person out of the three people playing at my place that's any good at it, we all just seem to depend on him with third person shooters and FPS. 
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