My favorite character moments of the year came from the excellent CypherCast Chronicles: A Fragile Estate parts 2 and 3 (I missed part 1). You can actually hear the recordings here.
I made a character inspired by Coombs' insane investigator from The Frighteners.
Part 2 took place in the Holstenwall recursion I designed for the CypherCaster -- which was cool in itself. The investigator was leading a team from the Estate through Holstenwall as part of an investigation.
In part 2, the best character moment came late in the game. My insane inspector had considerable problems communicating with others. He has a strange sort of stutter and was easily distracted. Late in the game the other players wondered if there was a problem with the audio or if that really was how he talked. There was no audio problem (at least not at that moment).
In part 3, the inspector got ahold of a suitcase motorcycle in a spy recursion. He carried it around the whole sessions (including hiding from gunfire behind it). There was a moment of triumph when he could finally use the motorcycle. He folded it out and zipped around the ship where the final confrontation took place. That feeling of finally seeing a purpose for my cypher was my favorite character moment for the year.
I usually GM so I don't have a lot of character moments -- but this was a fun one.