Knitwise of course:
10. Kauni Effektgarn Wool. Slightly scratchy, great colour repeats, and wonderful for steeking. I bought mine at Little Knits, and sing the praises of their customer service. They're actually so nice that I joined their board on Ravelry just to hang on the fringes.
9. The tidbits from Lucy Neatby. The Astrophysics of Knitting.
8. Korres Lipgloss in Nude. Not knitting, but a girl has got to look good doing it. And have soft lips in case TAO is around.
7. The incredible colour artistry from Bob at Winderwood Farms. Such lovely spinning fibers.
6. The great sock yarns and fibers from Leah at Yarn or a Tale
5. Little Loopy. Knitting needs a mascot, and life needs a smiling face to put on your monitor.
4. Harmony Options. Again, not new for 2008, but I didn't get any until this year.
3. Custom Knits by Wendy Bernard. Following my usual pattern I picked this up at the library. What was unusual was that I loved so many patterns from it that I promptly bought my own copy. The instructions for a top down set in sleeve...Amazing!
2. Namaste's Cali Collection. My Laguna is perfect for me. Soft, lightweight, sturdy, cleanable. And a Zuma was ordered by TAO for my birthday. Rich, I tell ya', I'm rich
1. Ravelry. Yes it wasn't new in 2008, but still my favorite tool. Patterns, yarn, friends, forums, queues, rubbernecking. Love it.