Labyrinth is the win.
I think the scariest moment in that oddball film was in the beggining, when sarah's talking about the goblins, and we see the goblins all wake up and stir. That was some bad-ass peice of directing. Forget Boris Karlof's "The Mummy". Those where the scariest three minutes in all of cinematic history. We have no reference, no point of view. There's no background, no walls, no props, just a sheer mass of goblins without a single pixel of empty space. There's a mass of inanimate, grotesque little dolls, and then they all slowly come to life, making their little groans and hisses and grumbles, stirring, filling with the artificial life of Henson-power like frankenstien's monster taking the charge from a lightning bolt. I reiterate that we don't know where they are. They could be over in goblin-land. They could be in some nether-space of the human subconcious. They could be just outside Sarah's house, or they could be (as I often found myself pondering when I watched the film as a kid) right behind you.
The overall effect of this scene is something that makes Night of the Living Dead seem like an episode of Teletubbies.