There are some really nice CDs of folk oriented Christmas music out there but finding them could be a challenge. And if you like the folk rock approach of Steeleye Span there are a few of these two and some very good ones. Here are a few.

Twas on a Night Like This - Folk Legacy. Cathy Barton, Dave Para, & Sandy & Caroline Paton: Acoustic folk and great album.

Noel Sing we Clear - John Roberts, Tony Barrand, & others. I have the cassette. Have yet to see the CD, but worth a try.

Christmas Revels - an annual Christmas celebration in Boston and a series of CDs with lot of variety and worth looking for.

Cold Blow these Winter Winds - collection of Celtic Christmas music and very well done. Every track is a winner.

Electric Folk:

Winter - Steeleye Span has been mentioned and fine choice.

Bruce Cockburn - Christmas. I love almost every track. Also has a CD with Jackson Browne that is worth a listen if just for The Rebel Jesus.

Maddy Prior and the Carnival Band
    Carols at Christmas
    Carols and Capers
    Gold, Frankincense, and Myrhh

Blackmore's Night - Winter Carols. One of my very favorite Christmas recordings. Blackmore's great guitar and Candace Night's voice plus good choice of songs.

Mudcat's Phil Cooper with Margaret Nelson, Kate Early and the Bitterweet Band have an acoustic Christmas CD. This one I have yet to hear but I would expect it be comparable to their CDs which I have heard. Phil's guitar is expressive and he is a master of the instrument. Margaret's and Kate's voice are certain to put a spell on the listeners. A sample of their music can be found here:

Cooper, Nelson, & Early