I'm actually yet to read anything in prose form which i would describe as scary, at least in terms of the horror genre. Some of Whitley Streiber's stuff is disturbing but not in terms of the story itself, more some dark undercurrent which I wonder if even HE was aware of.

Most horror seems to be going more for the easy gore angle or seems to think it's scary when in fact it's not even close.

You want to read something scary, read "As If I Am Not There" by Slavenka Drakulic, a novel set in the Bosnian war at the time it all started. THAT's scary.