I'm currently re-playing "I Have no Mouth and I can't Scream" and "Clive Barker's Undying" but latelly I have tried some free online horror games and to tell you the truth I'm impressed...some indie games are exceptionally.
Try this game...it's a horror rpg game with an astonishing story and atmosphere
http://www.gameshed.com/Scary-Games/Ib/