Now is the time to get going on Infinite Jest. You're a little behind the masses, but the Infinite Summer challenge is pretty cool. (Even if you're not reading the book, it's kind of cool, with a lot of interesting people participating.)

Also, agreed about everything you said about The Corrections, the quoted most of all. I also enjoyed Franzen's Strong Motion, though not nearly as much as The Corrections. I'd put it in the "definitely worth reading but not worth jumping to the top of your reading list" group.

I'm about to go to the beach for two weeks. I'll probably order it before I leave and have it waiting on me when I get back. I tend to prefer mindless tripe such as People Magazine for beach reading.

Gold Fools (1999)
Little Casino (2002)
The Moon in its Flight (short fiction, 2004)

Three late superb works from Gilbert Sorrentino.

And The Last Novel by David Markson.

Lunar Park, by Brett E. Ellis.
The Little Friend, Donna Tartt
Watch Out!, by Joseph Suglia.

Three off the top of my head...

infinite jest really is the best thing in recent literature

all of DFW's stuff is just amazing

Fooled by Randomness.

Only book mentioned I've read is "American Gods". I liked it quite a bit, but not sure enough to put it on any "best" list.

Play Poker Like the Pros

Shantaram. It's the true story of a heroin addict/robber who escapes from prison in New Zealand to Mumbai, India. He moves into the slums there and joins the criminal underworld. The guy writes beautifully and is full of insight.

I was about to say this as it's the best book i've read in quite a while and I recommend it to everybody. Gregory David Roberts is a great writer and has some very interesting philosophical ideas that he talks about in the book. But, it is literary fiction and the characters, etc are not real. He did draw on his experiences to mold Afghanistan, the slums, etc... but all of the characters are fake (or so he says).

- Time Travellers Wife (already mentioned).

- Snow by Orhan Pamuk. Pretty intense book I'm reading right now about life in Turkey (secularism vs. islam, west vs. east, etc etc). Won the Pulitzer. Amazing writing, but heavy.

+1 for Shantaram. Amazing story from an amazing man. It's actually the middle book of a trilogy he plans to write. I believe Johnny Depp has bought the film rights and is set to play Roberts.

Like to add "The Human Stain" to this list.

I'm more into nonfiction works, for example I loved Shadow Divers. What are some nonfiction books that make this list (I'm sure there were some already mentioned)?

http://en.wikipedia.org/wiki/Into_Thin_Air

its from 96 but its really good

The Code Book by Simon Singh is superb.

Bolano's 2666 is pretty interesting. It's broken down into 5 books although its sold as 3. I'm only one book through but I can understand why it was highly rated by a lot of reviewers. I'm enjoying it a lot.
I would also add the Road by Cormac McCarthy.

I'll probably read the Corrections next, I've had a copy sitting around for over a year but I never really looked at it.

Harry Potter? Really? I think the series is certainly entertaining but IMO it's pretty uneven, fairly juvenile (especially early) and calling the series some of the best written books of the last decade is quite a stretch. There are far more interesting books in the fantasy genre that are more adult-oriented too. George Martin, Steven Erikson, and Joe Abercrombie come to mind as authors with engaging series.

I definitely liked American Gods. Wind-Up Bird Chronicle is excellent also, and IMO better than Kafka on the Shore. Written in 1997 though, so it doesn't quite fit the OP criteria, but whatever.

I'd check out some Haruki Murakami, i've only gotten started on his catalog, but it's really cool reading.

I picked up The Brief Wondrous Life of Oscar Wao by Junot Diaz which won the Pulitzer in 08 and I'm liking it so far.

This was a great book. Also another wonderful book was the Yiddish Policeman's Union.

Currently I am reading the Girl With the Dragon Tattoo. This is a great book.

One of my favorites in the past 10 years has been The Curious Incident of the Dog in the Night Time.

Pretty heavy reader...will try to think of more.

Oh and Infinite Jest FTW obv.

this book is terrific.

and from what i've read about you martin, i think you would really enjoy this book:

letters to a young contrarian

it's written in the style of all the other "letters to a" series (not a series, but it seems like a good word) and very enjoyable.

I thought Corrections was brilliant, another vote for Brief Wondrous life, and im going to go ahead and say i didnt really enjoy The Road

I loved "What is the What" by Dave Eggers.

A short book that won the Booker Prize recently which was also good is "Vernon God Little"

Vernon God Little was awesome.