So I am curious what the best system for running a horror game is in other people's opinion. I have used several systems for my table top group. What is the most well liked here ?

The story is going to be investigation heavy and there will be some combat. It will be set in modern time.Each member will have had a brush with the supernatural and drawn together to deal with the same.

If the emphasis is investigation, I would recommend the Gunshoe system which is used in the Trial of Cthulhu RPG. The rule system was designed specifically for solving mysteries, but it still handles combat well enough.

Another good option is Palladium's house system which is used in horror games like Nightbane, Beyond the Supernatural, and Dead Reign. It's sort of a very combat-centric derivative of D&D. Palladium also has very nice random insanity table, the best this side of Call of Cthulhu RPG.

The Storyteller system from White Wolf games is a standard and holds up well to this day. It's skill heavy so it handles investigations well and also combat well but doesn't stand out in either category. This is a system which a lot of gamers know already, so it's a solid choice for getting players set up quickly. Storyteller characters tend to get hurt quite a lot, but they are difficult to kill outright.

Personally, I like C.O.R.E. (Chupa Open Roleplay System). I have run a couple of different Cthulhu scenarios with this ruleset, but almost no one has heard of that.

I am thinking FATE. I know many people dismiss it as creating characters who are too 'pulpy', but there have been attempts to overcome this, by adding sanity systems etc.
Also lots of people, IMO, make the mistake of trying to convert their favourite system to the FATE rules instead of just adding the rules to the background.

"Best" is entirely a matter of opinion. What do you want from your rules? Do you want a lot of skills and crunch or as little as possible?

GURPS should handle horror well :)

In reply to Alyse (msg # 4):

Hmmm I was asking what others thought was the best system. So I could look into them.

GURPS is my vote hands down.

If you're looking for Simple: Pocket Pie Shop.  It's got a beer-n-pretzels feel in terms of 'system', but definitely is completely geared towards horror.

Have you looked at Don't Rest Your Head?

Monster of the Week?

I would say World of Darkness. It offers a vast ammount of ideas, monsters and stuff like that. If you want the pcs to be mortals there is also a easy way to do it.