Silent Hill 1 reminds me of Stephen King's short story "The Mist" very much when i first played it .
If you want scary , try playing the fatal frames game in the middle of the night with all the lights turned off.
Sure to bring a chill with all the apparitions and the sound effects.
If you like survivor horror , Parasite Eve 1 & 2 for PS1/PSX is pretty cool as well.
http://www.youtube.com/watch?v=M-Tcl6qvfy4
http://www.youtube.com/watch?v=7UpMBQZYw4w