I got my master's in folklore from the University of Oregon, and it was wonderful. I got to work with amazing scholars like Dianne Dugaw (author of Women Warriors and Popular Balladry), and Carol Silverman (a highly regarded scholar of Bulgarian Roma/Gypsy music and dance). Plus Eugene has a great folk music scene and is in easy proximity to Portland and Seattle.

Of course Indiana is excellent, with a very big program. UC Berkeley also has a well-regarded program, but is the opposite of Indiana, only accepting one or two students a year. Memorial U. in Newfoundland is also very very good, and has a great new ethnomusicology program as well.

Good luck to you wherever you decide to go!
Rev