1. The Dark Crystal (1982) - The Skeksis
Don't get me wrong I love Jim Henson but don't you think most things he made were pretty creepy? Even Count Von Count freaked me out as a kid. I also had nightmares every time I saw Labyrinth in case my sister asked The Goblin King to take me away because I annoyed her. But nothing was more terrifying to an entire generation of children - myself included - than The Dark Crystal's Skeksis. The Skeksis came into being after the botched attempts by UrSkeks to purify their souls using shards of the fabled crystal. When it failed the infamous Skeksis came into being and seized control. Looking like demented Buzzard/Vulture/Lizard hybrid creatures the Skeksis are the Nazi's of their world, ruling the planet with an iron fist (or claw). The Dark Crystal has often been discussed amongst those who watched it as kids and the general feeling is it's not a kids movie, and yet it finds it's way into the kids range in HMV et al all the time. My God, even the good guys in The Dark Crystal are creepy so what does that tell you? This is the kind of film you should show to your little ones if they've been really naughty and all other forms of acceptable punishment has failed. Screw the naughty step, Little Jimmy! You're watching The Dark Crystal.
Honourable Mentions: The Donkey scene in Pinocchio, Marley and Marley in Muppet's Christmas Carol, everything in Watership Down and Willy Wonka's boat ride. Oh, and David Bowie's massive package in Labyrinth.