The Final 64 (subject to discussion)
NOTE: This is NOT the order they will be in, just a numbered list to make it easier.
1. Michael Myers (Halloween)
2. Freddy Krueger (A Nightmare on Elm Street)
3. Jason Voorhees (Friday the 13th)
4. Chucky (Child's Play)
5. Critters (Critters)
6. Harry Warden (My Bloody Valentine)
7. Pinhead (Hellraiser)
8. Leprechaun (Leprechaun)
9. Ghostface (Scream)
10. Patrick Bateman (American Psycho)
11. Xenomorph (Alien - 1979)
12. Hannibal Lecter (Silence of the Lambs)
13. Buffalo Bill (Silence of the Lambs)
14. Tarman (Return of the Living Dead)
15. The Tooth Fairy (The Tooth Fairy)
16. Dracula (Dracula films)
17. The Wolfman (Wolfman films)
18. Leatherface (Texas Chainsaw Massacre)
19. Billy (Black Christmas)
20. Puppets (Puppet Master series)
21. Candyman (Candyman)
22. Frankenstein (Frankenstein)
23. Alex (Prom Night)
24. Annie Wilkes (Misery)
25. Pamela Voorhees (Friday the 13th)
26. The Thing (John Carpenter's The Thing)
27. The Tall Man (Phantasm)
28. Evil Ash (Army of Darkness)
29. Norman Bates (Psycho)
30. Angela Baker (Sleepaway Camp)
31. Jigsaw (Saw)
32. Jack Torrance (The Shining)
33. Sam (Trick 'r Treat)
34. The Driller Killer (Slumber Party Massacre)
35. Ginger Fitzgerald (Ginger Snaps)
36. The Firefly Family (House of 1000 Corpses, The Devils Rejects)
37. Conal Cochran (Halloween III: Season of the Witch)
38. David (The Lost Boys)
39. Mrs. Cosgrove (Dead Alive)
40. Ben Willis (I Know What You Did Last Summer)
41. The Creeper (Jeepers Creepers)
42. Belial (Basket Case)
43. Pennywise (IT)
44. Gingerdead Man (Gingerdead Man)
45. The Collector (The Collector)
46. Toby (Paranormal Activity 3)
47. Mary Shaw (Dead Silence)
48. The Headless Horseman (Sleepy Hollow)
49. Roman Castevet/Steven Marcato (Rosemary's Baby)
50. Captain Howdy (The Exorcist)
51. Man and Woman (People Under the Stairs)
52. Helena Markos (Suspiria)
53. Cujo (Cujo)
54. Damien (The Omen)
55. Leslie Vernon (Unmasked: The Rise of Leslie Vernon)
56. Dr. Giggles (Dr. Giggles)
57. Gremlins (Gremlins)
58. Pumpkinhead (Pumpkinhead)
59. Cropsy (The Burning)
60. Eric Slater (The House on Sorority Row)
61. Billy Chapman (Silent Night, Deadly Night)
62. Mary Lou (Hello Mary Lou: Prom Night II)
63. Ann Thomerson (Happy Birthday to Me)
64. Gage Creed (Pet Semetary)
In going over this list I made a few amendments that I'd like everyone to discuss. They are as follows...
I removed the house from the Amityville Horror because I don't consider it a character. If anyone wants to dispute that its fine with me. In its place I put Captain Howdy from The Exorcist.
Added Tarman from Return of the Living Dead. Added several of Booty's suggestions as well as Brandon's.
Patrick Bateman is one I really don't know about, as others have already argued, but I left him on the list all the same.
Frankenstein is another tough one because the monster itself is not technically a villain, it would moreso be Victor Frankenstein that should be on the list, but again, if everyone is fine with keeping the monster then I'm fine with it too.
Crypt Keeper was more of a television character but if you want to keep him around due to his appearances in the Tales from the Crypt movies that's fine too.