I really don't like the Rieu translation, though admittedly it's quite good as a basic introduction. I love Chapman, though I wouldn't call his version a translation. I think I prefer the Iliad to the Odyssey, most of the time, but there are parts of the Odyssey which I adore. I've just been given a copy of Pope's version, which aside from being very pretty actually seems quite good, though I've only skimmed through it as yet.
Reading Homer in Greek (or the sort of mixed up bits of Greek, bits of other things in which he wrote) is amazing, I can't wait for my Greek to be good enough to read it properly. When I did GCSE we studied a bit of the Odyssey - I forget which book it is, but when Odysseus gets home and strings the bow and so on - and I know they heavily adapt the original text for you at that level, but even so it's so much better than any translation. And I love all the oral tradition stuff, I think it's really interesting. That works better in Greek, too ^_^