Marko..im gonna check out atlantis...and those other titles (other titles mainly because they look cool)..atlantis is a close match though!

In case you still haven't found the game, check out this Amiga game The Sword and the Rose. I posted C64 version before but this may look like what you're looking for, although you played it on PC, you never know. Also, hero dies at 5:00 of the movie so check that as well to see does that look like those blood and guts you mentioned.

The description also reminds me of altered beast and i think it was made for pc too.

Its funny that you mention that..because I believe that there was an old dude that brought your player from the grave (not altered beast for sure though)

The other thing I remember is your life gauge being a candle sitting on top of a skull..having to shoot arrows or arrows being shot at you...The game closely resembles nightbreed, realm of chaos, and nightwalk..

Not ghost and goblins...

Im stuck!..Its been months looking for it on and off...any thing else will help!