A standard roleplaying environment: the tavern. This is another easy one to create in your own home, providing you have a large enough group of roleplaying friends. Let us assume your PC group is no larger than five, and that the rest of your friends can be NPCs. Let us also aim for an exceptionally seedy and unscrupulous city tavern.
In a good LARP it is desirable to separate the players out individually at some stage, because they are more suggestible and afraid when they are alone. Some form of individual challenge is probably the best way of doing this. One possible setting for this is a cave system, and it is probably one of the easiest to recreate realistically, and one of the most perfect for playing on fears of claustrophobia and darkness.
You find a patch of edible funghi. They taste well and all, no ill effects. UNLESS you consume some beverage, even 3 (three) days after eating it. Then you become really sick with pains, vomiting, all the fancy stuff. As a gift or good meal, it could be a cruel joke or to make sure the heroes spend their time focused on the mission. And the fine soup you had in the inn yesterday could have some in.
(Inspired through a real-world fungus. Was really used to cure alcoholism.)