Jazz and Acoustic Guitar recommendation

Very good suggestions, Sdcampbell. I'd add only one name:
Howard Roberts. However, he'd never explore a tune to the extent I'd have liked. (Am told he tended to be a lot more ruminative in his nightclub appearances in Phoenix(?).

You studied under Charlie Byrd? Wow, that must have been a treat. Didn't he also record a "Live at the Village Vanguard" or is my memory failing?

Oh, one more. How could I forget George Van Epps, an incredibly gifted musician.

Quick addendum: Johnny Smith, another amazing musician whose music will likely please you, Supakit.

Seek out any of Baden Powell cds,you wont be dissapointed

John Scofield is very popular in Europe and is now beginning to gather a following here in the States. Scofield has released work with Metheny and Hayden among others.

Larry Coryell has been around a long time playing electric and fusion guitar. Not exactly a "lounge player" but some of his recent acoustic work is fascinating and beautiful (these are on hard to find labels), especially for audiophiles. Ralph Towner plays 6 & 12 string acoustic and has a number of releases on ECM--my recent favorite is "A Closer View" duets with Gary Peacock on bass. Also check out John Scofield's "Quiet."