In the vein of 'classical horror' anime, this is NOT Princess Mononoke, not by a long shot...

It's like Mushishi meets Hundred Stories, but animated by blotter-acid fueled nutjobs.

Features an art style that is weird and gets some getting used to, but it really fits with the creepy-deaky supernatural horror, like a bad acid trip. The art style sorta turned me off at first, but about ten minutes into it I thought that it was really complimenting of the genre and, actually, think it's better this way. It really adds something creepy to the feel...

The lack of animation is more than made up for by the excellent sound work, notably the special effects. Some excellent voice actors as well. Reminds me of the old days of horror films, where suspense is the key and not gore (in this case, sounds and unshown action, as opposed to fast/fluid animation).

Shinsen is doing it.
Shinsen Subs - Mononoke - Episode 1 - Child of the Tatami Room

Samples of the animation:

The main character


The puppies are watching!!! (background/scene shot)


I'm all up on this one.