In sweden, the label Silence started to reissue many of their out-of-print classics from the early 70's and Thurston Moore namedropped Träd, Gräs & Stenar (who were more droney and psych even if they had a strong folk-vibe too) and some internet record stores sold swedish stuff in america. I know that Älgarnas Trädgård's ultra-wacky "Framtiden är ett svävande skepp förankrat i forntiden" (VERY pretentious title!!! I won't even translate that shit) was cult for a while in the deepest blog underground but the more "normally" folky bands never really caught on; the new artist Dungen did well though-he had some of those influences even if he was more rock too. I guess Dungen was enough for people, no need to dig deeper. I can understand that with so much music from all over the world around everywhere...