Recommended Human Computer Interaction books:
Designing with the Mind in Mind: Simple Guide to Understanding User Interface Design Rules (2010)

Great book for all people designing and implementing user interfaces (UI). The book describes how to effectively apply aspects of psychology and human factors in designing UIs. The book provides comprehensive overview of good (and bad) practices in UI design. Worth reading for HCI experts as well as interaction designers, UX designers and industrial designers. Contains a lot of examples and practical application of psychology on design.
100 Things Every Designer Needs to Know About People (Voices That Matter) (2011)

This book covers most of the topics in psychology needed for understanding people and being able to design for them. Each of a hundred chapters in the book is based on research in the field, and there are also (several) examples of using the research outcomes in practical cases. Definitely worth reading, especially for designers!
Don't Make Me Think: A Common Sense Approach to Web Usability, 2nd Edition (2005)

This book shows designers how to put themselves in a position of the website visitor, and how to understand what users like to do and what they hate. Many practical examples demonstrate how to apply usability principles in webdesign, and what is the positive effect on visitors consequently.
Sketching User Experiences: Getting the Design Right and the Right Design (Interactive Technologies) (2007)

Description of practices in product design process leading to good user experience (UX). The emphasis is put on early stages of development. Lots of illustrations help reader to understand how to identify important aspects of a product, and especially the product's user experience (UX). There is also a useful workbook with instructions and exercises.
Neuro Web Design: What Makes Them Click? (2009)

Web design can effectively utilize research findings in motivation, (unconscious) decision making, and neuroscience. This books translates these research outcomes into principles of persuasion, and explains (and demonstrates on examples) how to design websites that encourage users to do certain actions.
The Shallows: What the Internet Is Doing to Our Brains (2011)

Author describes how technology affects human brain and human behaviour through (over)loads of information. Nowadays, Internet provides practically unlimited amount of information, and makes them available uqickly and easily to everybody. The book cites current research in psychology nad neuroscience to describe the vulnerability to discraction of human brain, and effect of information overload on comprehension and memory.
Gamestorming: A Playbook for Innovators, Rulebreakers, and Changemakers (2010)

The book consists of description of games that help tems collaborate, and perform better through shared engagement and game-supported group creativity. Following the techniques described in the book can help designers and developers overcome lack of creativity, efficient communication, understanding end user and incorporate enjoyment in their products.
Designing the User Interface: Strategies for Effective Human-Computer Interaction (5th Edition) (2009)

Ultimate reference book covering all areas of human-computer interaction (HCI) practice and research. The book also provides amount of references for further reading in all discussed topics. This book should not be missed by anybody interested in HCI - from novices to skilled professionals.
About Face 3: The Essentials of Interaction Design (2007)

Alan Cooper is expert in interaction design and the creator of personas used by designers to model users. This book provides comprehensive overview of interaction design techniques - containing qualitative research methods, working with user scenarios and product stories, personas, user requirements, and overall design process.
Designing Interactions (2007)

Hefty 800-pages book by Bill Moggridge, the founder of IDEO, contains short essays about product and interaction design. These essays explain the reasoning behind the shapes and functionalities of well-known design artifacts such as the first ocmputer mouse, early Mac computers, or Google website. These examples show the reader what are the key principles leading to well-designed product.