The serums are like the heart containers in Zelda. They permanently increase your health bar a little bit and, in doing so, completely refill your health. (Note: Somebody said in a forum post that they disappear from your inventory after boss fights? Seems unlikely, but who knows.)

There's eight total serums in the game. The locations are as follows:
* Serum 1: The town hall after meeting the judge.
* Serum 2: The bathroom of room 408 of the grand hotel. You'll need the axe to get in.
* Serum 3: Doctor Fitch's office. The examination room that the nurses burst through.
* Serum 4: Between fans 1 & 2 of the fan puzzle in Hell Descent.
* Serum 5: Shepard's Glen Cemetery. In the locked crypt opposite the one that connects to the town hall. You need the ceremonial dagger to open it.
* Serum 6: On a bench outside of the main entrance to Alchemilla Hospital in Silent Hill.
* Serum 7: In the Prison in Silent Hill. After solving the wire puzzle, jump across to the cell on the Second floor.
* Serum 8: Room 301 of the Lair.

There's also two achievements related to finding the serums:
* Kaufmann's Handiwork - 10 - Found 1 Serum
* Health Junkie - 50 - Found all Serums

Here's a video that shows the locations of all of them:
Source(s):
http://www.xbox360achievements.org/game/silent-hill-homecoming/guide/
http://www.wikicheats.com/index.php/Silent_Hill:_Homecoming_-_PC_PS3_XB360/...
http://boardsus.playstation.com/playstation/board/message?board.id=horror&a...


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