I still play Steve Earle & The Del McCoury Band's The Mountain monthly after owning for years. There's a lot of modern/contemporary Bluegrass I like (mostly under then less used lately alt.country banner), though the majority of it is quite awful. As you move back in time the classics seem more apparent, but I can't recommend The Mountain enough. Greatest thing The Del McCoury Band has put out and one of Earles best. In fact the tour of the album caused them to stop speaking. Call it roughed-up/loose Bluegrass. Not the sterile, pristine stuff of many country outlets.
Alison Krauss & Union Station, especially if you like silky female vocals to go with the bluegrass.
I recommend all discs by AKUS and Alison Krauss independently, with probably the exception of AK's Forget About It, which gravitates more towards alternative than bluegrass. Also scratch AK's Raising Sand, it is not bluegrass.
Bascom Lamar Lunsford, the quintessential Southern Highlands songcatcher. I don't feel like writing any more, he's all over the internet. Listen for a lesson in American culture history. This record is like a time machine; the distinct musical geography + Lunsford's endearing baritone make it a classic.
If you have Netflix, check out the DVDs of a TV series from 1962 called Pete Seeger's Rainbow Quest. It has amazing guests, like Roscoe Holcombe, The Stanley Bros and Johnny Cash.
Be aware that bluegrass has changed a lot over the years. Personally I don't care much for most of what's come out of Nashville since the 80's... but then again, some people don't like anything else. For great banjo picking I think that an old Stanley Brothers album would be a great place to start. The Vern Williams Band's Bluegrass From the Gold Country is also excellent in this respect (and in many others as well).
The old-timey (as opposed to bluegrass) picking on Riley Baugus' Long Steel Rail might appeal to you, also. It's a high quality modern recording.
Thanks for all the replies so far - I'm going to have to make a list of these and take them with me the next time I go out music shopping. I just hope that HMV or Chapters has them.
I highly recommend anything by Del McCoury. I saw him play the Opry last year and he's just amazing. Roscoe Holcombe and The Stanley Bros., are awfully good, too.
If you don't mind a plug, check out the feed from KCSN here:
Saturday mornings from 10AM-2PM (PST) is Cowboy Nick's show, Twang. Cowboy Nick is a friend and his show has bluegrass, classic country and some alt.country thrown in. No commercials, just good music. Check it out.
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