http://www.amnesiagame.com/This is by far, the
best horror game I have ever played. The game is made by the same people who made Penumbra (which you could know from the humble indie deal), or Frictional Games.
You guys just need to try the free demo on steam to see what it's like. I cannot describe it in words. It's plain awesome. A thing to keep in mind is that the game is supposed to immerse you, so you can't attack things and kill them, which is bad imo.
Interesting thing about this game. It was almost cancelled due to the lack of funds, the developer's salaries were cut in half due to the lack of funds, and Frictional Games will go bankrupt if this game does not sell well.