The only fanfic I read is Buffy/ATS stuff. I prefer fic that stays within canon, totally don't get slash (nor want to) and is well written. Of late I have been reading a WIP by hjcallypgean "Of Those Chosen: The Twins", a post Chosen Buffy fic; also "Living History" by liz_marks.I recommend both. One of my very favourite AU Buffy/Angel works is by Yahtzee, "Phoenix Burning". Any would be fanfic writers should also check out honorh's OBAFU (Official Buffy and Angel Fanfic University). It's fun and educational.
Going to do a little advance pimping for a virtual season six Angel that masqthephlsphr and a great bunch of writers from the ATPoBtVS board are working on. It will be in script form, and should be ready to go very soon. I've had the pleasure of reading a couple of the scripts, and it's going to be great. It will be posted on the Existential Scoobies page over on the ATPoBtVS site. I'm really excited about it.