Given the current Terror Tram direction, I think a house version works best since it takes place near and inside the cinema. I don't see how the concept works in a Terror Tram version.
Simple.. each segment of the Tram is a different B-movie, the Tram set-up video could either be fake trailers or teenagers approaching the theater and seeing posters for the different films.. or you could do it as a midnight movie marathon with a host ala The Screecher or some new character in that vein..