Stuart Gordon
The main reason DOLLS works as a horror film, despite its ridiculous premise, is because of the handling of the material by the underrated, always interesting director Stuart Gordon.
If you guys like DOLLS, you really ought to rent/buy everything else by Gordon. Even his lamest films are far better in comparison than most straight-to-video fare.
His best works, if you don't know or aren't familiar, include RE-ANIMATOR, THE BEYOND, KING OF THE ANTS and DAGON.