Oh well, since you said folk rock
Al Stewart - Rhymes in Rooms
An acoustic live album, it really shows Al Stewart's folk influences.
Ane Brun - A Temporary Dive
Ane Brun - Changing of the Seasons
Folkish pop, she's really good.
Cat Stevens - Tea for the Tillerman
Cat Stevens - Teaser and the Firecat
Again, folkish pop, from the seventies this time. Really soothing.
Comus - First Utterance
Acid Folk, if you don't know them already because of Mike.
Finntroll - Visor Om Slutet
As much as people bash this band, I find this acoustic EP quite good.
Horslips - Happy to Meet, Sorry to Part
Horslips - The Book of Invasions: a Celtic Symphony
Folk Rock, with Irish folk influences.
Iron & Wine - The Shepherd's Dog
He's one hell of a writer, this is a folk album.
Jethro Tull - Thick as a Brick
Jethro Tull - Heavy Horses
Jethro Tull - Songs from the Woods
Prog rock with a ton of folk influences, they are one of the greates 70-80 prog acts for sure. Thick as a Brick has the least influences, but it is my favourite.
Kings of Convenience - Riot on an Empty Street
Folkish stuff.
Mostly Autumn - For All We Shared...
Mostly Autumn - Spirit of the Autumn Past
They merge folk and prog rock a la Pink Floyd in a great way, I reccomended them a while ago.
Nick Drake - Five Leaves Left
Nick Drake - Bryter Layter
Nick Drake - Pink Moon
Those are ABSOLUTELY MANDATORY.
Premiata Forneria Marconi - Storia di un Minuto
Italian Symphonic Prog, lots of folk influences.
There's heaps more, I'm sure of it.