Can games really ever be scary? There could be a high level of creepiness, but in order to be truly scared you need to be in danger, like the character is. The security comes from knowing that your safe, that it's just a game.
There's a cool video I found at StumbleVideo.com. Search for Derren Brown-Zombie. It's a really interesting experiment that kinda relates to this disscussion. Or click this: http://video.stumbleupon.com/#p=6bz6sqguuw The video contains some strong language and violence.