Something that is an issue with games' level of interacivity, is that there'll be many gamers who will try and disrupt the narrative flow, especially if it's felt this is too linear and predestined. I often go the wrong way, try to kill an important NPC, not do a certain quest, etc, to see how the game copes. Usually, not very well, I can't be alone in often feeling bored being led by the nose down somebody else's dull story, to be slapped on the wrist for taking a detour. There is clearly a long way to go, and most importantly, interactivity is the key. Traditional linear narrative is not the way forwards. A large number of options may have an adverse effect on the length of a game, but it'd be one worth taking for the sake of immersion and replayability, IMO.

Games are at a difficult crossroads when it comes to stories. When a game is said to be "story driven", it's usually an excuse for rubbish gameplay, and indeed, the story not only nails the game to a tediously linear path, but it rarely rises above B-movie cheese. Game stories aren't going to challenge the likes of McCarthy, Irving, Banks, McEwan et al in the stroytellng, irony and black humour stakes any time soon. Traditional storytelling methods don't work in games, they're too linear; the "moral choices" idea is a good one, but needs to get over this black/white - good/evil thing - a major strength in modern storytelling is that it focuses on the greys, not the blacks & whites - Watchmen is a good example (as is the monotonous beat-em-up nature of the licenced games).

The only thing scary about Jericho (or, yes, Clive Barker presents Clive Barker's Jericho by Clive Barker to give it it's full ZP title ;-)) is how bad it was. Agree H-L2 should be there, Ravenholm - eek! And my scary favourite (as mentioned on the video thread), The Cradle from Thief-Deadly Shadows. The terror just mounted beautifully in that level, as close to a work of art in vidoe game form as I've seen.