A great loacl band here in Indianapolis that has just started to break onto the national scene (invited to XM radio studios to perform) is Loretta. I would like these guys a lot even if I didn't have the local pride factor. There's a couple music samples at their website.
Mike, thanks for recommending Candiria, those guys rock! It takes some getting used to, but they are amazing...
I host and produce a show called Insomnia Radio, which is featured right here on iPodlounge, and it's dedicated to uncovering about 10 indie bands per week. Our tagline is Kill Your FM. After hearing some of these, you may just do that. Give us a listen if you'd like to discover some great new music you've never heard.... http://hardcoreinsomniaradio.blogspot.com
Athlete - Can't even get the "Tourist" CD in the US, but it is very good. Earlimart - a US band whose most recent CD sounds like a cross between Elliott Smith & Death Cab for Cutie - not wholly original I suppose, but great music. Sia - Sia Furler. She sang some of the best tunes on Zero 7's CDs, and has a nice CD of her own (another import-only in the US). Very soft rock. Imogen Heap - Many of you have heard her sing as part of "Frou Frou", whose song "Let Go" was popular on the "Garden State" soundtrack. She has an awesome CD just made, waiting for a label to pick it up. Rachael Yamagata - A prolific songwriter who tours constantly, she poured out her heart on her first CD last summer. One of the best live singers I've ever heard; her voice can go from Fiona Apple to Janis Joplin in a single verse. How she can belt out music like that night after night is beyond me.
[Heres my list] Mixture of Indie and such.... take a listen and see what'cha think....
-I am Kloot <3
-The Shins <3
-The Faint <3
-The Good Life <3
-Kind of like spitting
-Iron and Wine <3
-Mates of state <3
-Azure Ray <3
-Belle & Sebastion
Agree with DBD, Rachael Yamagata is v.cool. Also I am loving Missy Higgins, she is an Ozzy and her music is very good she is an excellent piano player and songs are great. My favourite song is 'The Special Two' it's very good. I am aware that some of you may have heard of her but here in the UK i think she is still relatively unknown.
I just joined so sorry if i'm repeating things, but my list of good bands most people i know havent heard of:
Yes Dear (not the show) www.yesdearmusic.com
Armor For Sleep
The Arcade Fire
now obviously some of those are much more popular than others, but all very good, and fyi, if you liked ozma or arlo, then you'll love yes dear becasue its made up of members from both bands