Ian B,
Julian Bream definitely played jazz in his earlier days, and probably still dabbles in it today. I think he would describe himself today as a classical guitarist and lutenist (and I've read he's a passable pianist as well!). He has probably done more than any living guitarist to revive early music for the instrument, as well as encourage modern composers to compose for it. His 20th Century Guitar album was a landmark. I hope he's recovering from his illness.
I have to agree that John Williams is the preeminent living guitarist - particularly for the Baroque repertoire. Listen to 'The Baroque Album' or 'A Portrait of John Williams'. His recordings of Barrios and the Sor studies are also highly reccommended. A very nice fellow, as well. He over-heard me playing some of my O'Carolan arrangements at the Toronto '87 guitar festival (trying out a guitar at a luthiers' display) and stopped to have a chat. A great all round guy.
My favourite guitar recording is "Danzas y Canciones" (Marquis Classics) by Canadian guitarist Rachel Gauk. A great selection of contemporary and classic pieces; very lyrical, flawless playing.
I've also enjoyed David Russell (very warm, musical performer), Barueco, Stepan Rak (Czech) and John Feeley (Irish)..... there are a lot of excellent young performers.
Vinland