Sanitarium - twisted story of insanity and trauma. Does have two action sequences but nobody should have problem with them and you can repeat them until you succeed with no punishment for failing.
The Cat Lady - imo almost flawless psychological horror adventure game. There are two gunshots in the game but there are no action sequences nor 'game over' screen.
Gabriel Knight series (and especially GK1) - good paranormal mystery series. GK1 has a hard part where you have to avoid enemies which can count as an action sequence.
Scratches - slow-paced puzzle game with some really good scares. No action sequences.
Chzo Mythos - Trilby Notes are brilliant and very silent-hill-ish but to understand them you should at least play 5 Days: a Stranger (classic slasher). Timed puzzle sequences present.
Darkness Within: in pursuit of Loath Nolder - lovercraftian game, pretty frustrating at some points.
Phantasmagoria - interactive B-movie with lots of wasted potential. Timed puzzle sequences and avoiding enemy present. Part II feels like mild interactive Troma movie with some gruesome imagery and lots of sexual content.
Not scary but with horror elements:
Blackwell series - nice ghost mystery series.
