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Pick up Phil Hardy's Horror Film Encyclopedia. I picked up the first edition when I was 18 and it steered me towards all the right movies. Probably the most important book a horror newbie can own; not only will it let you know the best movies, but its overviews of each decade will give you a great understanding of the genre.
Along with what has already been listed, I'd also recommend Vampyr, I Walked With a Zombie, Psycho, The Black Cat (Karloff and Lugosi), The Wolf Man (simply the BEST monster movie of all time), House of Wax, Island of Lost Souls, The Fall of the House of Usher, Deranged, and Zombi. Weird indie stuff like Children Shouldn't Play With Dead Things and Tombs of the Blind Dead can be lots of fun, too.
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