I think a great villain (in the classic sense, not talking about anti-heroes or punching bags) fits into one of two categories (and sometimes both). The first is the unstoppable force: the guy who just runs roughshod over anyone who tries to get in his way (and would run over the hero too, unless the hero can find a different approach or a weakness). Anton Cighur; most blockbuster movie villains, Bond villains, etc.
Sometimes they wouldn't be particularly powerful in a natural sense, but they exist in an environment they've created where they are all-powerful and can control everything: Denzel Washington in Training Day; Nurse Rached; Kathy Bates in Misery; Hal. etc.
The second type of great villain is the guy who's strength is that he understands the hero (and others) more than the hero himself does. He understands the hero's motivations and weaknesses so well that he can manipulate them in subtle ways. Hannibal Lecter, Loki in the Avenger series, etc.
The best villains are the ones who combine these two: Keyzer Soze, for example (this guy who has committed horrible attrocities through sheer will, but is smart enough to sit in a room with this detective and give him exactly what he's looking for). Same with Ledger's Joker: combines ambitious, diabolical thinking with keen observation and understanding of all the other people in the story. Such villains force a hero to both find the villain's weakness, as well as confront their own.
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