I dont know if the original IS better, to be honest. While i love Chaney Jnr's Larry, and BITS of his Wolf Man are briliant and powerful even now, much of it is slow and stilted. I think Universal did a fantastic job with the remake- it drops the ball with the ridiculous Anthony Hopkins plot and the final battle is as crap and stupid as that godawful Jack Nicholson thing with the jumping wolves- but for the most part it looks right, feels right and is full of wonderful setpieces that stay with you long after it's over. The medical theatre transformation scene, the gypsy camp and hunt in the stone circle, are all as good a werewolf sequence as you'll find anywhere. Del Toro does a bang-up job channelling Chaney Jnr, and the more i see this the more i grow fonder and fonder of it. It does lots wrong, and is hugely bloated and overlong as all movies are now, but if you accept all that, i dont think there's been a better hollywood horror film in the last ten years.
SBT