If you're really interested in a thorough grounding in the horror genre, than a great place to start is H.P. Lovecraft's seminal essay, Supernatural Horror in Literature. Here is an online copy of it.

For more recent writers, I would highly recommend Richard Matheson, Thomas Ligotti, T.E.D. Klein, Ramsey Campbell, Joe R. Lansdale, and Robert Aickman.

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The Talisman and Lost Souls are both cheap paperbacks in print. You could still order em through a bookstore or go to half.com and get used for half price or less.

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Oh, i just got that you wanted to read *my* horror books. I was a little dense here. Thank you for offering, but, at this point, I'm much to shy. Thanks again though.

anything by H.P. Lovecraft,Stephen King,Clive Barker,Dean Koontz,Robert R. McCammon,Ramsey Campbell,Bently Little,John Saul,T.E.D. Klein,Douglas Clegg,James Herbet,.. and some great classic horror fiction from Lovercraft.. as well as Ambrose Bierce,Fritz Leiber,Robert Bloch,August Derleth,(who collaborated with as well as published Lovecraft)Algernon Blackwood, Edgar Allen Poe, and others.