The Descent, Devil's Rejects, Wolf Creek, Hostel and I have to watch it again but Possibly Saw 2. All Standouts for me. I also like a Land of the Dead and House of Wax. I thought it was a good year.
I almost hate to admit how much I liked the House of Wax re-imagining because of the Paris Hilton connection, but it was very solid and very enjoyable.
The Descent - there are a few decent flicks on the list but not what I would call a strong year for horror movies. Oh and let me add - The Descent is much better with the original international ending not the crappy American theatrical ending. When I watched the American theatrical ending as part of the special features I was shocked how bad it was - couldnt believe anyone that saw this at the theatre got that ending and that the studio thought it was a good idea.
It broke my heart not to pick Hostel. Had to go Rejects. Anyone who can't at least appreciate those, I feel sorry for you.
The Descent is classic. One of the best modern horror movies. I can't believe it's 10 years old already.