I noticed on Slashdot an article about people who are afraid to play horror games. You can actually count me in this group.
When I go home and play games, I make a conscious effort to shut down the tester inside of me and just play. I've always been good at voluntarily suspending disbelief for whatever form of entertainment I'm participating in, and games are no exception.
The "Silent Hill" games are great because they instill a wonderful sense of dread in the player, as if all hope has been sucked out of the world. I'm still having a hard time playing "Fatal Frame," though, because they do an amazing job of sucking all of the hope out of you.
"Eternal Darkness: Sanity's Requiem" for the GameCube was a truly terrifying experience because of how Lovecraftian it felt and the tricks that it played on the player as well as the character really drew you into the game, and "Call of Cthulu: Dark Corners of the Earth" drained sanity points from me every time I played it.
I love playing scary games, but there are times when I have to put the game down for a month or two before I can continue. My wife continually teases me about them as well because she just gets to sit back and watch them while I have to live them. She bought "Rule of Rose" and I'm still in the second chapter because the kids are just freaking me out.