My favorite book of 2005 was Marcia Lewandowski's Andean Folk Knits because it was the only book for several years that focused on stranded color knitting. My favorite retailer was Knitpicks because I'm not sure I could continue knitting if I had to pay some of the high yarn prices I've seen.
I forgot to add some projects I want to knit for 2006. I want to make the Debbie New sideways garter stitch socks from IK a few years back. I also want to make the Del Mar lacy wristwarmers from the winter issue of Spindlicity out of some hand-dyed merino singles and the Fair Isle hat pattern HERE. Tomorrow I'll have the last FO of 2005 and a list of what I've knit.
Here are my two favorite projects of 2005 - the Aran Island mittens from Folk Mittens and the Floral Fair Isle Gloves from Interweave Knits.