At the end of 2007 a Spanish film was released titled "The Orphanage."
It got good reviews, and I enjoy spooky movies (though I haven't seen one yet that I've confused with reality), so I bought a copy of the DVD yesterday.
I thought it was quite good, built good tension, kept me in suspense, and didn't go hog-wild with gore.
Here's the official site. be sure to explore it a bit.
http://www.theorphanagemovie.com/
MWA-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA-HA!