Illbleed/Nightmare Fuel

Make no mistake; there's a lot of very creepy and disturbing atmosphere underneath all the cheesy stuff.
 * The grim, decaying remains of Banballow Hostel.
 * The blood-drenched, dimly lit, but cheerfully decorated aisles of the Killer Department Store.
 * The Morgue in Stage 5. Take a good look at the texture they used for the enormous pit full of corpses.