This has become pretty much how I itemize my years now as well, not because I didn't buy or hear enough (I have two 18-track CDs this year) but because they seem to far more accurately reflect how I experience music than a 1-10 ranking of albums. So:  

CD1  

LCD Soundsystem, All My Friends
Pela, Drop Me Off
Frightened Rabbit, The Modern Leper
Busdriver, Casting Agents and Cowgirls
Ted Leo & The Pharmacists, Who Do You Love?
The Paperbacks, Institutions
Wheat, Little White Dove
The Good, The Bad & The Queen, Herculean
Laura Veirs, Drink Deep
Bright Eyes, Soul Singer in a Session Band
Sage Francis, Water Line
Radical Face, Glory
Parts & Labor, Vision of Repair
Patrick Wolf, Get Lost
Apostle of Hustle, A Rent Boy Goes Down
Simon Wilcox, Eyes on You
Arcade Fire, (Antichrist Television Blues)
The New Pornographers, Adventures in Solitude  

CD2
Voxtrot, Introduction
Buffalo Tom, Three Easy Pieces
The Mendoza Line, Since I Came
Shocking Pinks, End of the World
Aesop Rock, None Shall Pass
Telephone Jim Jesus, Faces All Melted
Georgie James, More Lights
Future of the Left, Manchasm
Rasputina, Incident at a Medical Clinic
Interpol, Rest My Chemistry
Los Campesinos!, Don't Tell Me To Do The Math(s)
Stars, Barricade
Jimmy Eat World, Big Casino
The Weakerthans, Night Windows
M.I.A., Paper Planes
Bloc Party, Flux
Why?, The Wig Master
Okkervil River, John Allyn Smith Sails  

Song of the Year was LCD Soundsystem's "All My Friends."
Album of the Year was M.I.A.'s Kala.
Albums that I'm surprised/disappointed that no one else but me really heard were Georgie James' Places and Telephone Jim Jesus' Anywhere Out of the Everything.

My 2007 mix CD. I no longer do "best of" lists because I can't profess to have heard enough to make a judgement but these are single songs, or songs from albums that I liked over the year.  

"The Opposite of Hallelujah" Jens Lekman Night Falls Over Kortedala
"Radio Nowhere" Bruce Springsteen Radio Nowhere - Single
"My Rights Versus Yours" New Pornographers Challengers
"Bachelor Kisses" Radio Dept. FYN 51 (Go-Betweens cover)
"Murderer" Low Drums & Guns
"Red Sea, Black Sea" Shearwater Palo Santo (reissue)
"Hock It" (YACHT Remix) The Blow Poor Aim: Love Songs (reissue/remix)
"Bouncing Off Clouds" Tori Amos American Doll Posse
"High Times" Elliott Smith New Moon
"BBC World" David Kilgour The Far Now
"No One's Gonna Love You" Band of Horses Cease to Begin
"Boy with a Coin" Iron & Wine The Shepherd's Dog
"Paper Planes" M.I.A. Kala
"All My Friends" LCD Soundsystem Sound Of Silver
"Brandy Alexander Feist The Reminder
"Salt To The Sea" Tim Finn Imaginary Kingdom
"Don't Stop Now" Crowded House Time On Earth
"Australia" Shins Wincing The Night Away
"Gestation of the Sacred Beetle" Mirah and Spectratone International Share This Place: Stories and Observations