xxAbsol95xx
Something I realized a few months back is that in all zombie films no one has heard of a zombie movie or heard them in a story etc.
Not totally true.
The George Romero classic
Dawn of the Dead features an dialogue-based scene where Peter (played by Ken Foree) mentions reanimated corpses are apart of Vodou and Santeria, of which his grandfather with a priest. It's from this scene that comes the classic line, "When there's no more room in hell, the dead will walk the earth."
Another- the oft-hated "Worst Film Ever" by Uwe Boll,
House of the Dead, features a direct in-dialogue reference to Romero's original three zombie films.
Another- modern zombie-comedy classic
Shaun of the Dead has numerous Romero quotes, and Shaun shows hesitance to use the word "Zombie" for fear of the films. The film also has Shaun and Ed playing the video-game Timesplitters 2, which has a zombie-oriented first level.
These three come to mind immediately, but there are a fairly large number of films that make reference to other films in literal character dialogue. Just as frequently can be seen references to the original folk tales of Vodou and Santeria.