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Ian McDonald's River of Gods is absolutely fantastic, it rocked my world. The picture it paints of a near future India is incredibly vivid and compelling. Made me want to visit India. I haven't read any of the other 2005 Hugo nominees, but at least this book is totally deserving.

Also, I shouldn't have read (well, haven't yet finished, I've been reading it on the commute) The Family Trade by Charles Stross: now I have to wait for the sequels. It's smart, fun and totally not your run of the mill fantasy. And just the right size: as the author commented on Making Light, short books are the new long.