I just saw "The Ring". A movie that is widely talked about here in Japan. It's a horror movie that came out in 1998 and put some interest back in horror movies.
If you can find a copy it's a MUST WATCH MOVIE. (I'm sure you can at a Japanese video store but then of course you'll need to understand Japanese)
It does require some setup though. Watch it at night. Watch it with the lights out. Watch it alone of you can. Watch it at a descent volume level.
It's not particularly fancy. It doesn't have any effects or gore. In fact my Japanese friends thought it wouldn't do it for an American but it did for me and it did for lots of other fans on Amazon.co.uk and IMDB.com Note: Don't read those reviews as they over hype it and give away lots of the story. It mostly works because of tension and a good creepy soundtrack. It's not perfect but it's at least not your average American horror gorefest, slasher, movie.