Spotlight on Progressive/Psych/Kraut Rock:

Jan Dukes de Grey - Mice & Rats in the Loft
When this album was reissued in 2003, I was a high school senior, looking to expand my musical output and somehow started frequenting Other Music's new music updates, showing me what was new in the world of obscure music. At this point, I had almost no bearing on "progressive" rock other than a couple King Crimson and Yes albums, and I only really loved KC's debut - but when I heard a sample of this album on that website, I bought the cd reissue.
And promptly lost the cd within a week, never to be found again. That was ok though, I managed to rip it to my computer and onto my Creative Zen Xtra (this was pre-iPod for me) and fell in love with this album over and over and over.
It was basically the first in what is now a pretty extensive (and underused) progressive rock collection - but it's also responsible for how giddy I get when I hear about a new Six Organs of Admittance record or when I first discovered The Incredible String Band. Yes, I was listening and obsessing over Jan Dukes de Grey before The Incredible String Band
Hell, even before Fairport Convention. This is just a monumentally important record to me and though I don't even know if I would put it among my very favorite "prog" or folk albums now, it's certainly something I still enjoy a great deal. It can ramble, it can get monotonous if you don't typically enjoy 18 minute long songs, but man some of the passages in here are among the best things ever recorded. Seriously.
Other great overlooked prog/psych/kraut records (omitting a ton):

Marsupilami - Arena
-Short lived UK prog band that wasn't really doing anything that wasn't being done by others - but were pretty good. This album is worth hearing though because some of the lyrics are just absurd and the concept is basically that of the arena's in Rome and the Republic ruling class and all sorts of crazy shit.

Jade Warrior - S/T
-Totally meandering, peaceful Moody Blues and Jethro type shit that works pretty good. I mean, it's not the most brilliant album, but do some drugs and fuckin lounge out. Some real crunchy moments too.

Chico Magnetic Band - S/T
-Some parts of this might be the heaviest shit ever recorded. I mean there is some serious feedback and pedals involved with this. Tapes too I imagine. Hendrix and Deep Purple more blunted than ever and then turned way the fuck up

Fresh Maggots - S/T
-Not necessarily deserving of the huge status is has with a certain group of collectors and weird psych nerds, this is nevertheless an intense progressive folk record worth hearing. Really blown out at points. It seems like no bass is ever present, just all over the place - great for a spring drinking day.

Broselmaschine - S/T
There has been times in life where I will take this album over anything Can ever put out. Kraut-folk? It's great. One day I'll write a lengthy piece about this after it becomes my favorite album ever.[video][/video]