My favorites:
Vitamin H. This is ER code for Haldol, apparently, but I always thought it would be a cool name. Vitamin T is code for Thorazine, but it just doesn’t have the same ring to it.
Richard Cranium and the Four Skins. This one hopefully needs no explanation.
Back when we were in an SD chat years ago trying to name Jeff’s band, someone (not sure who, so if anyone remembers, please credit them) came up with “Bottomless Beer and Topless Waitresses.” This can probably be added to the list of band names that piss off club owners.
Nuclear Beer
“Will there be another race to come along and take over for us?”
“Gere’s Stinky Gerbils” or just “Stinky Gerbils”
I heard that Hootie and the Blowfish got their name from a Letterman top 10 list of the worst band names. HATBF was #1, so they used it. Can anyone confirm this?
There was a band in this area called The Killer Dwarves. 
I’m suprised no one’s mentioned Toad The Wed Sprocket, a really good alternative band named after a Monty Python sketch.
“I like Florida; everything is in the eighties. The temperatures, the ages, and the IQs.”
– George Carlin