Vargtimmen (or Hour of the Wolf) is a Swedish classic that consistently gets high ratings, even today. As a psychological nightmare, it's certainly a solid film. But as a horror movie that one goes into for enjoyment, it doesn't quite stand up. Hour of the Wolf is a Bergman classic, and it's probably worth a view, but if you're not that into experimental films, or movies that don't have much cohesion, I might recommend something else.
What did you think about this late 60's Swedish flick?
(http://fight-evil.com/movies/years/1968/268-1.jpg)