Favorite Character: Sasuke.
I love him. I just think the path he's going on is amazing, albeit disturbing and dark.

Favorite Jutsu: I haven't picked one... I think Henge no Jutsu is interesting. Kishimoto hasn't explained all the technicalities of it and it's interesting to explore. It seems like you LITERALLY turn your body into something else, phsycially, not just illusion. That's really funky. Like Naruto and Sasuke did in the Wave Arc, Naruto could turn into a weapon for Sasuke to use. SPOILER if you've only seen American anime showings Kuchiyose is also neat, I like the seal Orochimaru has on his arm for it. It's slick. The bloodletting makes it cooler too than just some hand seals.

Fave story: Valley of the End. You dunno what I'm talking about if you've only seen the US airings.
Fave episodes are the really beautifully animated ones like Lee v Gaara during the Chuunin prelims, Sasuke vs Orochimaru during Chuunin Test #2 in the Forest of Death, the episode concluding the Haku&Zabuza arc.