I absolutely love fantasy! My favorite book of all time - The Last Unicorn, by Peter S. Beagle. This book really is a fantasy classic, and I highly recomend it. The story is beautiful and sad, with a sprinkling of humor and some neat allusions.
I also like humorous fantasy - my favorite in this subgenre would be the Xanth series by Piers Anthony. Has anyone else ever heard of him? He writes some funny stuff, and it's even funnier if you live in Florida like I do, because the author himself is from FL and based his magical land on our odd state. Xanth is a fantasy land w/ humans and magical creatures just like many others you will find in books, but the unique idea behind it is that every human has a special power, a "magic talent." Instead of there being just wizards and mortals, everyone has something, which means things a whole lot more interesting. The other distinguishing feature of Xanth is that everything is literal - for example, a nightmare is actually a horse. The series is full of hidden jokes, innuendo, and an endless supply of puns. I reccomend it to those who like humor and fantasy. The two combine suprisingly well in this series, because fantasy allows you to have an unbridled imagination. The neat thing about the author is that he has such a connection w/ his fans, they send him ideas and puns they have thought of and he includes many of them in his stories. One girl (Jenny) who was a big fan was hit by a drunk driver and paralyzed, so Piers Anthony began writing to her and even made her a character in the series.