Fern- You made some interesting points about horror genres. I really hadn't thought of them in those terms before, but most of my games tend to be Man vs Nature, vs Monster, and vs Man, with the occasional vs Unknown. I have run a few Man vs Himself, but unless you have a REALLY good role-player who is willing to play along for the sake of the story, that hasn't worked to well IMO- gamers are too suspicious by nature.
Also- what I meant by gritty horror was more along the lines of something realistic, or something that could really happen. I have run and been in adventures dealing with the terrible things that can happen to the PCs loved ones, war, rape, ritual murder, serial killers, etc. These kind of things seem to hit players a little harder than a monster or ghost, although some people are not comfortable with it.
Henry- Um, umberhulk?
Joshua- I agree that D&D characters seem a little too resilient to be threatened by encounters most people would term "horrific". A lot of this has to do with player mindset, but there is also a strong rules component. What things do you think could be done ruleswise to encourage a horror-conducive rules-system. Off the top of my head the CoC Sanity rules would work, as well as maybe a WP/VP system. The 10 hp massive damage rule in CoC is an option too- but with the amount of damage spells and creatures that do lots of damage, this might be a little too fatal. We already use a WP/VP system, but not the CoC stuff.
I'm asking this question because I am getting to a point in my campaign where the PCs are going to be dealing with spirits and fiends pretty heavily, but I don't want the game to be about whacking the baddie with a +umpteen sword until it goes down. I run a low magic world without absolute good and evil, and depending on the PCs actions, they might end up siding with the demons against their own churches, lords, etc in order to uphold the greater good (it sounds weird, and its a long story). I want to make the otherworldy beings seem really alien and horrific in order to keep them guessing and somewhat on edge the whole time. Any advice or comments would be appreciated.