henry:portrait of a serial killer would certainly fit well on this list. it's kind of odd that two of the films that freak me out to no end(henry, blue velvet) came out in 86.
It's definitely, definitely worth moving to the top of your list in my opinion. Seriously, I absolutely love it...it's completely absorbing, so devastating and so beautifully done. I have yet to see Repo Man, but it's on my increasingly lengthy list of movies I need to see.
Glad you liked it. Several people have recommended Sid and Nancy to me over time, and it's on my unfathomably huge list of movies I must see. I love Alex Cox's Repo Man, so it's got a fair chance of knocking off Will Winton's Twain and making my top 10.
1986 is one of my absolute favourite movie years ever, and this is an awesome list. The only film I would add is Sid and Nancy.