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I highly recommend the Japanese ones. They're lower budget films, so they have a less glossy look than their American counterparts, as well as more practical visual effects instead of CGI ones, but the end result is a more organic kind of horror movie, with Kayako coming across scarier because...

I was underwhelmed by the first one. And the "The End...Or is it?" coda was ridiculous. The Japanese series is far spookier, and much more atmospheric. My girlfriend at the time watched The Grudge and told me "eh, it wasn't that scary". I made her watch Ju-On: The Grudge the next night. She...