Many people don't realize that there are a lot of free movies legitimately on youtube now:
http://www.youtube.com/movies?fl=f&pt=fmYou can find some classic bad ones like PLAN 9 and the Mexican SANTA CLAUS on there but you have to browse a bit. There look to be over 300 free movies just in the horror section.
There are even more than that scattered around on various channels, but you sometimes need to know where to look.