.I think it was at the lake building. When i went down the main stairs, my flashlight just catches one of the monsters standing there silent. As i approched it, it growled and starting spazing toward me. My heart and my ass jumped a bit from my seat. That part was intence!

"possible spoiler"................. I forgot to mention that the radio does not make any static when this event happens!

The Lakeside Hotel you mean?
Um...lets see. I think maybe when Pyramid Head was chasing James and Maria in the Hospital Basement.

Oooooooh, I know exactly what you mean with the basement scene. That's the hardest part of the game, and it's scary, too.

I think that I'd have to say it's a tie between the first time you ever see Pyramid Head (when he's behind and you can't kill him), and this one time I decided to turn off my flashlight and radio (going stealthy style), and walked right into a group of monsters, then turned on my flashlight to see what was going on. I was out of ammo (only had the pistol), and it was early enough on in the game that I didn't really have anything too profound, melee wise.

the underwater prison scared me the most....especially the part with the cells and the radio was going off but you couldnt see anything

The prison was scary, especially the yard and cell blocks. The Lakeview Hotel was creepy. Not scary, but it just felt wrong. The areas and characters scared me more than the creatures ever could.