I just watched Totoro last night. Like every Miyazaki film I've seen, I enjoyed it. I think one of the small things that I like about his films are the quirks of some of his characters. They are almost unnoticable sometimes and happen for no apparent reason whatsoever. For example in My Neighbor Totoro, Mei and Satsuki are running around their house and for no discernable reason, Satsuki makes a wrong turn, stops, turns around, and then goes the right way. It had no bearing on the plot, but small things like that are always happening in his films. I think its his way of making his characters more realistic.
As for my favorite of his films,
Spirited Away
Nausicaa of the Valley of the Wind
My Neighbor Totoro (a little partial right now)
18-May-2006