Out of EVERYTHING in the game, I remember that moment the best. Don't ask me why, because there were plenty of similarly freaky moments in SH2, but when I think of the game that moment is always front and center in my mind. Little moments like that tend to sometimes get to me better than the other more over the top one's.
The Great Knife was awesome. Also, I don't think there were any enemies in SH2 that didn't make me want to scream upon seeing.