Thanks for the recommendations, Bruce (and the pans: I was almost tempted by the Stones book and the Animal House book--the NYT review made it out to be the funniest book ever).
My favorite reads of the year aren't half as obscure: Fred Exley's A Fan's Notes (I had to read his other two as well, but the critics were right in this case, they're not as good). I also really enjoyed Virginia Woolf's "Mrs. Dalloway" and "To the Lighthouse." I had tried to read her years ago, but with no success. I guess I caught her at a good time this year.
Most overrated author I read this year for the first time: Charles Bukowski (I read Post Office, Women, and Ham on Rye). I know I'm late to this party, but I always suspected this guy had to be overrated. My hunch, based on these three books, proved correct.
For young people tempted by Bukowski's allure, I recommend reading John Fante instead. Bukowski has basically admitted to ripping him off, so why not start with the original. Ask the Dust, the first book in the Bandini Saga, is a good introduction to his work. I also enjoyed The Brotherhood of the Grape and West of Rome which I read after reading Bukowski this year to help clear my mind of Bukowski.