Several of my favorites have already been mentioned: Deltron, Modest Mouse, Kid A, Shellac, Yo La Tengo, Songs: Ohia - The Lioness, Ghostface, Outkast, and QOTSA. Big yes to all of those especially YLT, Shellac, and Songs: Ohia.
At the time, my favorites were probably - 1. Kid A, 2. Bjork - Selmasongs, 3. Deltron, 4. PJ Harvey... something like that. I've hardly listened to that PJ harvey album since then, though. And I hated that Badly Drawn Boy album.
My favorite now:
Jackie-O Motherfucker -
Fig. 5(This is the reissue cover, not the original. Hard to find a decent-sized image of the original one now, but it's pretty similar.)
I didn't start listening to JOMF until 2002, a little after their album
Change came out. I ordered
Fig. 5 and its follow-up
Liberation directly from the now-defunct Road Cone label not long after downloading and really getting into
Change. This album,
Fig. 5 is arguably their defining work. They were lumped in with the New Weird America "movement" by Wire magazine along with bands like No-Neck Blues Band and Sunburned Hand of the Man. Sort of shambolic, junkyard, neo-jam-band stuff. But JOMF stands way above those other bands in my mind and fortunately they transcend that whole "scene". There's much more in the way of songs in their ambling compositions and improvisations. More soul, more melody, more grit, more drama, more payoff. This isn't for everybody, but I love it.
Others not yet mentioned (unless I messed them):
Godspeed You Black Emperor -
Lift Your Skinny Fists Like Antennas to HeavenDidn't think I'd be the first one to mention this. It seemed pretty huge at the time. I didn't really start listening to it until a few years later, but I certainly heard plenty about it when it came out. This is sort of taking the big cinematic, huge crescendo take on post-rock to its ultimate conclusion as far as I'm concerned. There's still some room for more melodic and immediately memorable stuff like Explosions in the Sky (and the other, completely different takes on "post-rock"), but most of the rest is rendered obsolete by this album.
Enon -
Believo!Super underrated album. I guess most people either prefer the poppier, later Enon stuff or the more manic Brainiac. This might be an unsatisfying middle ground for many, but for me it's the perfect medium. In a lot of ways it still sounds "cooler" than Brainiac to me, and while I like the more refined pop of Enon's following albums, I miss the wilder, darker side on display here.
The Microphones -
It Was Hot, We Stayed in the WaterThe precursor to their best album, it still has some excellent moments, mainly album centerpiece "The Glow" which is probably my single favorite thing Phil Elvrum (or however he spells it now) has done. A rough-hewn psychedelic mini-epic that foreshadows the sprawling full-on epic of
The Glow, Pt. 2.
Avey Tare & Panda Bear -
Spirit They're Gone, Spirit They've VanishedLater re-branded as an Animal Collective release and packaged along with
Danse Manatee, this really hints at all of the directions Animal Collective would head in over the following decade, all the way to
Merriweather Post Pavilion. It's considered one of their "noisier" releases, and it does have that in common with other early Animal Collective offerings. But the pop sensibilities of their more recent stuff is evident on tracks like "April and the Phantom" and "Chocolate Girl". Still one of my favorite things they've put out.
There's lots more I could post about, too. Great year.