Trilobyte, which was a team from Virgin Ineractive Entertainment.

That game actually did scare me a few times. I also liked the theme song which was on this promotional video I received for the game.

Here's a link on the game.

Oh, and you're kind of correct, but rather I believe it was the first game to have live action video.


*edit*
Info on Trilobyte - I have no idea how old this is:
"Creators of The 7th Guest and The 11th Hour, Trilobyte Inc. is a developer of entertainment products. Founded in 1991, Trilobyte identified a strong market for advanced entertainment titles that combine the interactivity of a CD-ROM with a story line.

Trilobyte's debut release, The 7th Guest sold more than 1.5 million copies worldwide. The 11th Hour, the company's follow-up effort, shipped with one of the highest number of pre-orders ever for a CD-ROM game.
While Trilobyte's first two titles - the aforementioned The 7th Guest and The 11th Hour were published and distributed by Virgin Interactive Entertainment, the company's ensuing titles; Clandestiny and Uncle Henry's Playhouse were developed and published solely by Trilobyte.

Trilobyte has successfully hurdled technology limitations with the development of proprietary tools and technologies. To overcome barriers in PC technology like sparse color palette, poor video playback, marginal sound quality and limited speed of CD-ROM drives, Trilobyte developed a proprietary system called GROOVIE, which enables the company to fully integrate full-motion video and multi-layered sound into its products. Trilobyte's proprietary development tools allow the company to simultaneously produce its products for all emerging platforms, an approach that represents a tremendous market opportunity."