Arctic Monkeys - A Certain Romance
Beatles - A Day In The Life
Stiff Little Fingers - Alternative Ulster
Johnny Cash - Hurt
Nirvana - Sliver
Radiohead - 2+2=5
Royksopp - Eple
And, partly cause it's 12 minutes long and I'd have to survive on the island, I'd go for Pink Floyd, Shine On You Crazy Diamond.
Book? Besides the obvious answer of some form of survival book, I think I'd take Das Kapital. I'm not sure whether or not I'd have it in English or German. It's tough enough in English, but I reckon that, with enough figuring out, I could handle it in German, given a few years on a desert island.
The luxury would be a writing kit, i.e. pen and paper.