I still haven't done any kind of end of year list for 2007 and I really have no clue what I'd mark as the best of the year. The majority of things picked up were rather average, but here's a bit of a recollection in alphabetical order. Further down will be some releases worth looking out for in 2008.
Actually, I will take back my words on saying last year was average as those are all excellent releases. Just trickier to find the good than in 2006 when they seemed to be flying in from all over the shop. A nice selection there. Lots of stuff that is great in the background, but also some madness - mainly the appearance of the Dev/Null album (finally - was introduced to his stuff about 5/6 years ago now and this is what I believe to be the debut album!).
Now, for 2008. Well we're already one and a half months in, and there have been quite a few releases worth checking out, like the amazing 12-string acoustic guitar, lute and samples collaboration between James Blackshaw and Jozef Van Wissem entitled Brethren of the Free Spirit and the quiet hype of Laura Marling's beautiful folk/pop album and the semi-autobiographical poetic piece from Aidan Moffat (formally of Arab Strap) which tells of his sexual past - funny disc, the written intro is something you'll laugh out loud reading - but there is surely more to come? Ooooh yes. A label to keep your eye on if you're into slightly warped indie folk and a bit of noise is Reverb Worship run by a nice fella called Roger. He tells me of Wooden Spoon, Stone Baby and Kawabata Makoto (of Acid Mothers Temple) releases to come in the near future. All three of his releases so far (Keijo, Sand Snowman and Vapaa) have been top draw and limited to less than 100 copies each; its a bit of a scramble.
There are a lot more, but linking so often was taking it out of me so I narrowed it down to ones that I'd highly recommend. Definitely up for taking some recommendations as well so please throw them my way. Word is a new Boduf Songs album is in the works as well, so I'm leaving the top spot open until the end of the year just incase Mat gets it finished in the next 10 months.