This news came just in from the blog of Neil Gaiman, my second favourite author in the world:
Terry Pratchett, my FIRST favourite author in the world is now a knight of the British Empire!
From the BBC News webpage: Sir Terry, 60, said he was "flabbergasted" to be knighted for his services to literature. [...] He said: "There are times when phrases such as 'totally astonished' just don't do the job.
"I am of course delighted and honoured and, needless to say, flabbergasted." [...]
Also the bbc has a little interview with him talking about how he feels about being knighted, check it out!