As a service to the reader I've limited myself to one winner in each category (ties are allowed), you're welcome!
Best Album of 2007
Stars - In Our Bedroom After the War
Yeah, they are pretty much horrible live, but who thought they could follow-up Set Yourself on Fire with an even more consistently listenable album with lyrics like, "How could anyone not love the terrible things you do?" And it has a song modeled after a personals ad.
Best Album of 2007 you didn't think you'd like
The National - Boxer
Something about the typography on their last album, Alligator, made you think this was fratboy music. Damned if you were going to end up owning this year's Songs about Jane, but then you heard the song Green Gloves so you bought the album and damn...is...it...good.
Best Song of 2007 on an otherwise horrendously overrated album
Of Montreal - Heimdalsgate Like A Promethean Curse
This song has the trifecta: key shifts that are related to the meaning of the lyrics, crazy drug references, and ruminations on the fickle nature of inspiration. But the rest of the album is pretty damn tedious. Buy the single.
Best British album of 2007 (that actually came out in 2005)
The Boy Least Likely To - The Best Party Ever
If you have children that can't understand the lyrics they will love this album. It sounds like the catchiest kid's show theme you can think of. If your children can understand the lyrics you might want to just enjoy this one by yourself.
Worst Album of 2007
Bjork - Volta
I like you Bjork. I like the Sugarcubes. I LOVED Dancer in the Dark. You scared the bejeezus out of me when I was a kid by riding around on a giant teddy bear with one eye on MTV, but I cannot stand this album. Sorry.
I'm stopping here before this list grows out of control but the You'll never fool me into buying another one of your tossed-off half-assed albums you drunken idiot award goes to....Ryan Adams - Easy Tiger.
Happy New Year.