I'd suggest Demon's Crest and Sunsetriders, but those are pretty pricey. I don't know when the value for Demon's Crest shot up, I know I didn't pay anywhere near what it's going for on eBay when I got it a few years ago.
I would recommend Evil Dead 2, it straddles the horror-comedy line really well. Would anyone else agree that John Carpenter's The Thing and Alien might fit this bill? 28 Days Later, perhaps?
Edit: Also, Jaws. I don't even know if you'd even classify it as horror by today's standards, but everyone should watch Jaws.
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