Undead Nightmare is an add-on for Red Dead Redemption, that add's a new Single Player story (it's around 6-10 hours long, depending on how you play) and can be bought on a network (Playstation Network or Xbox Live) for Ten dollars, or the equivalent (800 MSP).
It also add's some multiplayer content:
Undead OverRun - Basically a 1-4 player co-op Zombie Horde Mode
Land Grab - A game you play in free roam online in which posse's try to control a certain area of the map.
Zombie Characters for online play - You can play as Zombie Marston, Zombie Ricketts and a few others.
It's worth the ten dollars in my opinion.
You could also do what I did and buy the disc, if you don't have the other two add-ons (Legends & Killers and Liars & Cheats) and want to play online with the extra content. If you buy the disc, it's thirty dollars, but it contains the three add-ons that are ten dollars each anyway, and in the case you get an Undead Nightmare foldout map.
So, if you're asking if it's worth the ten dollars for just the add-on, yes.
If you're thinking about getting the disc and don't have ANY of the add-ons, that's also worth the thirty dollars it asks (since you basically get a free new fold-out map/poster and an actual disc).
The only downside about having the seperate disc is that you can't use the Tomahawk/any of the new weapons on the regular Red Dead Redemption if you purchase the Undead Nightmare disc, but I don't feel like that would have been a big selling point to me anyway, because after I beat the game, I'm just playing online.
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