I am a fan of the traditional stuff, too, but also like those English rock bands who have a heavy folk influence (Steeleye Span, Fairport Convention, Jethro Tull, etc.)

There are a few folky bands out there and a bit of early music happening but perhaps they is few and far between as it is in the states...I have a CD from a great band based in Somerset called Dragons Fly; lots of unusual trad instruments, great arrangementsof traditional songs/tunes, and some good original songs, too...