The best acoustic guitar recordings??

A hearty second to Edorr's recommendation of Ralph Towner and Egberto Gismonti on ECM. I am especially fond of Towner's work in Solstice and Gismonti's recording, "Silencio" with Charlie Haden.

Also worth checking out are recordings of various Robert Fripp projects (e.g., League of Crafty Guitarists).

Richard Thompson should be mentioned, although I'm not all that big a fan.

Jerry Garcia and Dave Grisman "So What"....
an incredible acoustic set of Miles Davis' "Kind of Blue" album, transcribed for guitar and mandolin. It's really good stuff.

This one features solid (if unremarkable) SQ, but insane playing:

Tommy Emmanuel "Little By Little"

For a taste, click here ...

http://www.youtube.com/watch?v=S33tWZqXhnk

Marty

Sorry, the Gismonti recording I had in mind is "Magico" with a Haden composition called 'Silence'.

Chet Atkins & Jerry Reed - "Me & Jerry"/"Me & Chet". Two early out-of-print 70's instrumental albums re-released in '09 by Raven Records out of Australia on one CD plus bonus tracks. Great sound quality & great pickin' - highly recommended.