Oh god this was such a downer!! There is NOTHING scary in Phoonk and irritating shots of dolls and other figurines does not a horror movie make.
This response is for Rahul - In India a hit or a flop is not declared based on ROI unlike in the US. It's all at the distributors table. That's why even a film like Sarkar Raj is not considered hit even after grossing 35 crs. because the distributors suffered losses based on the price it was sold to them by the producer. Whereas a Jannat is considered a superhit because it would've sold at a comparitively low price and raked in about 25 crs.
His interviews and his responses to critics on his blog show a tactless irreverence, especially for someone whose last 7 films flopped. Unfortunately, Ram Gopal Varma has taken that recklessness to his profession, too, and Phoonk, one of the most repugnantly cliched films in recent times, is a marquee example. While a Mani Ratnam, a Trivikram Srinivas or a Steven Spielberg makes one film every 2 years, Varma seems to churn one out every quarter now. The sanctity of the effort has gone down the toilet, and like for a gambler on a losing spree, it's failure catalysing more failure.