Most nightmare-inducing character ?

[BumblebeeCody]

What DHXIII and Nicknclank. The Redeads were pretty scary but Termina Moon is meant to make you crap your pants.

Ones to add are:
Silent Hill 1 - Claw Finger


Resident Evil 4 - Iron Maiden
combined with their theme and their breathing...seriously awesome.

Fatal Frame 2/Project Zero 2 - Peeping Child
Unexpected

Scissorman - Clock Tower


Can't really think of anything else. Dead Space had it's odd necromorph pop-out at you. Anyone who's played Barts Department Store knows the "crap brix" factor that area as.