I stumbled across FreeIndie.com this morning. They've got a pretty nice database of free indie albums for you to download. Of course no-one has ever heard of these bands but if you look hard enough I'm sure you'll find something worth listening to.
The bands are categorized as: Rocking, Mellow, Angry, Punky, Emoish (wow, almost sounds like a religion that way), Electronica, Hip-Hop and Favourites. All tracks are .mp3 and albums in a handy .zip file
Here's a nice acustic version of Hello Tokyo's "Bury Yourself" to get you started.