This annual festival has gotten larger and larger over the years. In its current incarnation, it is arguably the most important new music festival in North America.
There are literally several hundred musical acts in many different genres that invade Austin during the third week in March. Some acts are already very prominent while others are still trying to break into the buisness. The bars and clubs are filled to the brim with entertainment lawyers, music journalists, and L.A.-types.
The downside, of course, is that all of the usually free venues carry a steep cover charge during the festival week. You can buy a wristband for $125 that allows you entry to all of the venues providing that space is available.
There are free shows held at Auditorium Shores featuring bands whose prime has passed. Keep up to date with who is going to be the hot acts by reading the daily issues of the Chronicle and XLENT.