I just got this on a triple-feature DVD with The Terror and Mania on it. I also saw Nightmare Castle on Count Gore's internet show. I love the look of this movie. Everything is very contrasty, the shadows are impenetrable and the sets are amazing. It succeeds in being a truly Gothic horror film. The dialogue is wanting and the characters aren't any beefier than most horror fare offers but that's half the fun. The film makes an effort to focus on an atmosphere of dread and it does it well. This is definitely a good film for late night viewing and, as another poster mentioned, I really miss having truly local television that would play this kind of stuff.
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