A lot of people don't find Fatal Frame that scary, either, but I thought it was terrifying. I really think it depends on what you're willing to accept as super-naturally possible. Like, some people think resident evil is scary, because of the zombies and mutants and shit. I think it's intense, but not that scary. I think Fatal Frame's scary because while I don't exactly believe in ghosts, I think the concept of a ghost, an entity that can touch you when you can't touch it, or in other words decide what it wants to interact with, is pretty damn terrifying. If a ghost could reach through a wall and knock over a candlestick sitting on the table, it could just as easily reach through your rib cage and grab your heart.
:shiver:
How do you stop something like that?