Proverbial Jon said:
It sucks, I kinda rushed through that game with my friend, and never came across that room. I remember all of the other parts though, including one in a closet filled with mannequins. There was one just standing there between two shelves, and when you walk around behind another shelf, you hear a scream, and a thud. You walk back and the mannequin is bloody, and the head is on the floor.
One other moment caught me REALLY off guard, because it wasn't built up, and there was no scary music to go with it. At one point you're walking down a hallway, and you turn a corner and come upon a glass case, and a wheelchair with a teddy bear on it. If you examine the teddy bear, it says something descriptive about it, no big deal. Then, when you return to gameplay, there is a disfigured dead body holding a teddy bear, hanging in the glass case. I played it with my friend, and we saw it and were like "Ummm... Was that there before?" *Nervous laughter*.
Also, the creepy monster turning the crank in the distance. You probably know what I'm talking about.