Thanks for sharing these lists - I'm going to use them to drive my next few emusic months. I want to reciprocate, but it isn't easy for me to come up with a "Best of 2008" list. I spent a lot of 2008 digitizing my existing music collection rather than looking for new music. And I am generally not on top of new releases, so the albums I latch onto in a given year are not usually new. I'll probably stumble across some great 2008 albums over the next 2-3 years! However, I do have all my songs tagged with years, so I can fairly easily look at my collection and identify the 2008 discs. Having done that, here are the ones that I'd list as favorites (in no particular order):

REM - Accelerate
The Stills - Oceans Will Rise
Headlights - Some Racing, Some Stopping
Kathleen Edwards - Asking for Flowers
The Rosebuds - Life Like
Skydiggers - City of Sirens
Todd Snider - Peace Queer
Over the Rhine - Snow Angels

I wasn't going to include "Snow Angels" because it is a Christmas album, but after I got into this, I realized that I didn't actually have 10 favorite new albums of 2008, so I decided to include it to help fill up the list (and I really do like the album a lot).