Absolutely.
Go ahead and watch http://www.youtube.com/watch?v=uIRo0iT0qNw&feature=related around 2:00-2:30
That's essentially the main reason Amnesia is so scary: Whenever you're spotted, you cannot stand and fight. Running is the only option. For some people, this is especially nightmarish because they have an inherent fear of being chased, such as myself. To this day, I have yet to get past the water room.
As for what I think is the best, as well as my personal favorite: Silent Hill. I actually think the first game, while good back then, hasn't aged all that well and is thus one of the weakest entries in the series now. However, I love 2, 3 and 4. The music, the atmosphere, the tension; all of it goes unmatched within the horror genre, IMO.