Here's a list of bands from Austin. Some are better than others (meaning some I mentioned purely because they are from Austin)...
Vallejo - think Santana meets Jane's Addiction. I've met a couple of them.
www.vallejomusic.com
Patrice Pike - she plays rootsy rock...think a lower-key Ben Harper or Black Crowes with female vocals
www.patricepike.com
Los Lonely Boys - "Texican" rock...think Santana meets Stevie Ray Vaughan
www.loslonelyboys.org
Cruiserweight - Green Day-esque punk with female vocals. I've interviewed them.
www.cruiserweight.com
Blue October - indie post-grunge hard rock with a twist...electric violin
www.blueoctober.com
Canvas - think a less metallic Godsmack with an obsession with middle eastern rhythms
http://www.canvas-online.com/home.html
W.C. Clark - Austin soul-blues guitarist and former mentor to Stevie Ray Vaughan
www.wcclark.com
Gary Clark Jr. - Incidentally, I went to high school with this guy. Anyway, he's a blues guitarist...but more old school/traditional than most.
www.garyclarkjr.com
Tribal Nation - pure reggae
http://www.tribalnationmusic.com/index.htm
The Gourds - bluegrassy, folky band with a humerous and often goofy attitude. They aren't a comedy band in the least though.
www.thegourds.com
Fastball - Some of you might have heard of them. They play what I would call pop-rock with a very very slight latin flavor.
www.fastballmusic.com
Unloco - there should be one of those double period accent marks over the n in thier name but I don't know how to type that. Anyway, they play fairly generic but decent modern metal. They played Ozzfest in 2003
www.unloco.com
Two Guy Trio - there's four of them. They play fairly poppy indie rock with a laid back and goofy vibe.
www.twoguytrio.com
Ian Moore - he plays bluesy rock that's also a little poppy I'd say
www.ianmoore.com
Eric Johnson - The best of the 80s shredder guitarists (because he's not over-indulgent with his playing). Now he mixes that style with out right blues. I've met him.
www.ericjohnson.com
Doyle Bramhall II - one of the few blues-rock guitarists out there today who may be able to reach the mantle that was held by Stevie Ray Vaughan. He plays in Eric Clapton's band now (as far as I know)
www.doylebramhall2nd.com
Doyle Bramhall - The father of Doyle II. He's a singing blues drummer. He co-wrote a few Stevie Ray Vaughan songs.
www.doylebramhall.com
MC Overlord - big fat rapper...who doesn't rap about cliche things like *****es and hos and money and shoes and bling
http://www.onr.com/user/ranhines/MCOVERLORD.html
Dirty Wormz - I hear good things about them. They play what they call "Street Rock"...a fusion of rock and hip-hop...but in a non-poser way.
http://www.dirtywormz.com/dwz/index.asp
The Real Heroes - Good, fun, straightforward rawk. I've interviewed them.
http://www.the-real-heroes.com/