Meli Meli's a great album, a fine place to start, and the Rough Guide's okay, too. But the question to ask with raï is, "how raw do you wanna get?" As far as the best blends of North African and Western musics, Mami is about as cohesive and light as I'd wanna go before the genre devolves into disco music with exotic voices on top of it. Ditto for Faudel (whom they used to call the "little prince of räi"); his Baïda is a better album than Meli Meli.
Of course, Khaled is the king, but unless you go for his thing hook, line and sinker, you only need the infinitely listenable and funky N'ssi N'ssi, his (and the genre's) internationally-acknowledged breakthrough and masterpiece. If you find you dig that more than Mami (I certainly do) and wanna dig deeper, get Kutché, the collaboration with the inventive composer/arranger Safy Boutella.
Two compilations:
Arabesque Tlata 3 - a mix of old and new with Khaled, Rachid Taha, a breezy DJ collaboration between Mami and Nitin Sawhney, and modern classics from Sahraoui & Fadela as well as Cheikha Rimitti, the woman who helped invent the genre decades ago.
Oujda-Casablanca Introspections, Vol. 1 - A personal fave; also old and new stuff, Moroccans more than Algerians. Really the most hardcore fusion of the style I've heard and the best nonstop party.
Hope this helps...
