I just started playing the Anniversary Collection for the GC, and I must say it's so much fun   Definitely brings back memories...
Let me add that I'm very happy to see that the multi-hit glitch in the original Mega Man is still intact, otherwise I don't think I'd ever finish that game!  One of the great things about this collection is that you can pick it up and put it down so easily.  The games are simple yet very addicitve, and some of the music is quite rockin'!  Which brings me to my question:

Can you recommend a good Mega Man/Rockman album?

I'm not particularly fond of MIDI, so if there are some good arranged albums you can suggest, that would be cool.

cheers,

-avatar!

Unfortunately Mega Man soundtracks have been largely left ignored until very recently.
There was a Capcom Music Generation released featuring the music to all 6 NES games, but that's about as good as it gets in terms of official release.
There are two single-CDs that were given away as a participation prize for a Robot Master design contest in Japan, both of which featured 6 arranged tracks from the first 4 games, performed by Alph Lyra or whatever it's called.
There's some cool stuff on there, but it sounds kinda dated now.

Also, the Rockman Power Battle & Power Fighters games feature remixed tunes from the first 7 Megaman games, although it's EXTREMELY hard to get these soundtracks now.
Your best bet is to get the Rockman remakes that were released on PSX around 6 years ago. Megaman 4, 5 and 6 all feature completely remixed soundtracks, all of which kick total ass. I think this music was also used in the PS2 version of MMCollection, although if it is anything like the GC version, sound quality will suck.

It's all midi though, the Megaman series has been stubbornly refusing to move into the area of live instruments (The guitars in MMX 7 and 8 aren't real either, right?) which is kind of a shame.

There's a Megaman X Arranged Album with live performance though, although whether you'll like it or not is up to you, it's mostly kind of jazzy and not very Rock-inspired at all, but I think there's still a bunch of good tracks in there.

I don't know about albums, but you may or may not be aware that Megaman is exceedingly well served in the fan rearranging community  - AE in particular has done a great selection of MM2 arrangements:

http://www.ocremix.org/game/megaman2/

I would just recommend the Rockman 1-6 and X1-6 boxsets, because they are both mint, but...

Not really, unless you're down with the Rockman X fusion album (which I think is quite good). I guess the Rockman Zero Remastered albums are pretty rockin' at times, but the music is of a different style than the older stuff. I'd recommend RMZ4 above the other three, but they might not be to your particular liking.

Yes, it was used in the PS2 version with "Navi" mode. I've heard the GC version won't let you hear the music while playing, but it was unlockable otherwise. Also, tracks from Power Battle/Fighters were just reused and whatever wasn't already on them was redone (aside from MM7, which is all the SNES music...Guess they had enough problems emulating it as is, without tinkering with the soundtrack).

In 7, they're definitely not. They sound much better in 8, but they're apparently sequenced, since a guitarist is only credited for a handful of tracks (1, 35, 39-42), which leaves everything else. Could have fooled me though.

Anyway, these are the Rockman soundtracks I normally I keep on the "Megaman" playlist on the iPod and thus recommend:

Rockman 1-6 Collection
Rockman X 1-6 Collection
Rockman X7
Rockman X8
Both Rockman Special CD Arranges (the ones Amazingu mentioned).
Rockman Battle and Chase (the OST for the kart racing game)
Rockman 2: The Power Fighters
Megaman Network Transmission (gamerip)
Rockman 4-6 PSX remake (rips)
Most of Rockman Zero 2 and 3 Remastered (mostly just filler tracks removed)
Rockman Zero 4 Remastered
Megaman Powered Up (Gamerip)
Megaman X Irregular Hunter (Gamerip)
Megaman 1-5 for Gameboy (rips)