My desert Island disk would be a MP3 DVD with a few hundred of my favorite songs. Ok, I know that is totally not in the spirit of the question. All of a sudden the question becomes extremely difficult.
So many contenders.
A few of the candidates:
U2 - Achtung Baby -My favorite album from one of the greatest rock bands of our time. From the opening lines of "Zoo Station" to the end it is a nearly perfect album.
"I'm ready, ready for the laughing gas
I'm ready, I'm ready for what's next
I'm ready to duck, I'm ready to dive
I'm ready to say 'I'm glad to be alive'
I'm ready, I'm ready for the push"
-Zoo Station
R.E.M. - Murmur - Their first album. While they had many great albums that followed, something about "Murmur" still makes it my favorite. If I had to listen to it on endless loop for the rest of my life I wouldn't complain.
The Jesus and Mary Chain - Psychocandy - To my ear they have always sounded like mutant surf music. Once you get past the droning feedback their music has a lot in common with surf music like songs written by Dick Dale. Since we are talking about desert island music some surf songs might be appropriate.
David Bowie - Scary Monsters - While Bowie has a number of other possible contenders with "Diamond Dogs", "Ziggy Stardust", and "Heroes" "Scary Monsters" still stands out to me as the one I couldn't go without.
The The - Mind Bomb - A fantastic album, although perhaps a bit too melancholy to be listening to forever. Still, it is a contender.
Laurie Anderson - Mister Heartbreak - I was tempted to put down "United States, Live" which spans 5 records and around eight hours but that felt like cheating. Also not all of it is of the same quality. There are sparks of brilliance but there are also some self-indulgent clunkers there as well. With "Mister Heartbreak" however Laurie delivered a nearly perfect album of quirky pop songs. I still listen to it on a regular basis and I could listen to it forever.
The Pretenders - Pretenders - Stripped down Rock and Roll sung by one bad-ass woman. Sexy, a bit raunchy - rock perfection.
Pink Floyd - Wish You Were Here - Again we have a band with a number of contenders in their catalog. While "Dark side of the Moon" and "The Wall" are masterpieces, "Wish You Were Here" remains my favorite. While the album can stand on its' own as one of the all time great rock albums a lot of this has to do with the fact that the person who introduced me to Pink Floyd passed away when he was 25. He was one of the most important people in my life and I still miss him. Putting this album on always brings up fond memories. I wish here was here....
Brian Eno and David Byrne - My Life in the Bush of Ghosts - A strange blend of world music with found sounds. Quirky to an extreme. Where else can one find an exorcism set to funky music. While Eno's early pop experiments like "Taking Tiger Mountain" and "Here come the Warm Jets" are strong contenders, to me this is the one that is indispensable.

Finally though I have to choose just one and so here it is:
Simple Minds - New Gold Dream - Probably not on the top of may other people list but it is an album that holds a special place in my heart. A wonderful album full of songs that I have alway felt were very cinematic. It seems like it could have been a soundtrack for a movie. It is a great soundtrack for life. It not only brings back good memories but is a great for creating new ones as well.
"We were on the top and the world was spinning
We were only young in the whirlpool of warning
Communication lost in the thundering rain style
A shelter from the storm in the early beginning
Going out in the Big Sleep, out in the Big Sleep
Could have been years, you know it could have been years
Or only seconds ago"
-Big Sleep