Resident Evil series are more about blasting zombies than anything else, but Silent Hill II was really something on the PC, despite its "Playstation" origins.
If you allow me, I think the simili-3D surroundings of the first opus of Alone in the Dark are pretty ugly. The pixelated heroine's face shown from the intro scares me more than the baddies themselves
From Lovecraft, I recommend the masterpiece "@ the Mountains of Madness", it's a little bit longer than his other works so be sure you can devote a few hours when you start (you'll notice it's quite impossible to drop reading it at some point on, it's THAT good).
Also, you must know he was the head of some kind of Society, and some of his followers were quite good at writing "Cthulhu's Mythos" stories (August Derleth...). Last, Edgar Allan Poe can't really be deemed #2, despite Lovecraft great talent.
Sorry for OT.