The Faery Handbag by Kelly Link is a Nebula nominee and I read it last night.
I loved it. Although I'm finding it very hard to articulate why (I'm so rubbish at reviews!). It's a fantasy story, first person, that tells the tale of a handbag. Hmmm, not doing it justice here.
Just start reading it. The language is wonderful, with a great sense of character (which can sometimes be tricky in first person). The narrator tells the story as a stream of consciousness, going off into interlocking tales. It builds to a wonderful image of her life. It made me smile lots, at times it's funny, in a soft way, but there's also sad bits.
Once I finished it left a lingering glow in my head and I couldn't stop thinking about it. Lovely.