Glad you guys have Suspiria in there! I've only seen that film once and a long time ago, but found it pretty scary! I was expecting nothing as it looked like a cheap horror, but it was pretty good!
As for the thing being no.1 - damn good film, pretty scary. Paranormal activity should be a bit higher up, as should the Shining. One film I liked that was pretty unsettling was ''My Little Eye''. No one else seems to rate it very highly, but I thought it was quite chilling. As for night of the living dead 2 being on the list - Wasn't that the one in ths shopping mall? Do me a favour - that's a comedy film! Crap!
On the whole, a good list - well done!