@Nikki, I'm with you. What is going on here? I had this same question when I saw that Amy Wino is up for both "Album" and "Record" of the year at this weekend's Grammy's too.

As curiosity was boring a hole in me, I checked it out and this is what wikipedia says on the subject. Perhaps this is the same rationale MOJO is using?

The Grammy Award for Album of the Year is the most prestigious award category at the Grammys. It has been awarded since 1959 and though it was originally presented to the artist alone, the award is now presented to the artist, the producer, the engineer and/or mixer and the mastering engineer. In 1962, the award name was extended to Album of the Year (other than classical) but reverted to the shorter name by 1965. A rock 'n' roll album did not win the award until 1968; a hip-hop album did not win until 1999...

Many wonder what the difference is between Record of the Year and Album of the Year. Record of the Year is awarded for a single or for one track from an album. This award goes to the performing artist, the producer, recording engineer, and/or mixer for that song. Album of the Year is awarded for a whole album, and the award is presented to the artist, producer, recording engineer, and mastering engineer for that album. So, in this context, "record" means one song and "album" means the whole collection of songs on a CD or LP.

Unlike Record of the Year, which goes to the artist and production team of a single song, Song of the Year goes to the composer(s) of the song. Therefore, Record of the Year is awarded to the best recording.