definitely check out Bela Fleck and the Flecktones like it has already been mentioned.
My personal favorite is Otis Taylor. He plays "trance-blues" and puts on one hell of a good show. You might recognize Ten Million Slaves or Nasty Letter. Here are a few songs from his album "recapturing the banjo"
and then probably the baddest version of Hey Joe every recorded (There is a banjo specific version on the previously mentioned album):