Ouch. Can’t belive I missed that one. Kudos.
Three more:
The lonely unsold dog in the pet shop? [URL=http://quimby.gnus.org/html/group/thatdog.html]That Dog.[/ULR]
The two guitar-case-carrying dudes? The Band.
The depictions of men in uniform everywhere (mail carrier, cops, musicians)? This is pushing it a bit, but… Men At Work.
I’m not really satisfied with this, but could the blond bubblegum girl on the fire escape simply be Blondie?
No you’re dead on, but I think that’s represented by the contruction workers on the roof of the building on the right.
Another (probably bullshit) answer could be Men Without Hats.
Believe it or not, I actually considered this one and thought, “nyaaaahhh…”. I’m glad you’re willing to take the heat for that one. 
(SNenc is probably going to have to do some culling to whittle the results of this thread down to 74 decent entries – but it might be more fun if he selected the 74 most obscure, “reaching” answers instead!)
The subway entrance could refer to, using UK terminology, The Tubes.
The bank of metal-grill cages in the pet shop? Wire.
The fabric behind the queen looks like it’s a certain old-fashioned extension of her dress. A Train, in other words.
Some BS guesses:
The lesbian exhibitionists and the contortionists could also be, collectively,The Perverts.
The teen girls running across the street, holding hands? [Alternate answer] Teenage Fanclub.
And the nice-looking gorilla on the left? Gentle Giant. (Now, that’s bullshit!)
Unfortunately, the “manic street preachers” appear to number five (although you can only see four heads)… I was hoping they’d double as The Gang of Four. OTOH, if you think they look like a bunch of escapees from a mental hospital, they could represent Madness. 
What are the smiling [gourds?] on the produce stand supposed to be? I don’t think I’m going to be able to fall asleep tonight without an answer to that one…
Sure:
The watermelon in sunglasses: Blind Melon.
The TVs with newspeople on them: Talking Heads.
The Smashing Pumpkin’s sledge hammer: Tool.
Not So Sure:
The contortionists: Twisted Sister?
Any of the people looking like they don’t belong: Outkast?
I was thinking those were lemons, and that’s where I got my guess of Lemonheads from.
I didn’t see anybody mention…
Yellowman
but what’s up with those colored boards(?) behind the Preachers, the calendar ( August 21, '06), and the oranges with faces on 'em?
I didn’t see anybody mention…
Yellowman
cornershop
that necklace looks like a Heart
and, wasn’t there a band called Shelley’s Manne Hole Cover (or some such), or was that just my imagination?
but, what’s up with those colored boards(?) behind the Preachers, and the calendar ( August 21, '06)?
Grace Slick???
the calendar ( August 21, '06)
Green Day!
Alright, let’s get organized here. Square brackets designate general horizontal strips for keeping track of where we are–I was not very rigorous. Curly braces {} are items that look interesting but haven’t been defined yet or not convincingly anyway. Parens () are notes so we all agree what we’re talking about–Hah!
Starting at top left…
[very top section, left to right]
{shadows on building}
{lady blowing bubble gum–Blondie?}
Led Zepplin
B-52s
[down one “row”, right to left]
Eagles
{three guys on the rooftop holding the railing–Men at Work? Men Without Hats?}
Mountain
{Trees on top of mountain?}
Gorillaz…or The Monkees?
[down again, left to right]
Pixies (Pink faries)
Whitesnake {climbing lightpost)
{blue front on building}
Rolling Stones (duh)
Black Flag
U2 (grafitti)
Crowded House (buncha folks in the windows)
[down one more, right to left]
{giant spoon–Spoon? Big Spoon, a rap artist?}
{guys with boards–Surf Punks? Surf Nazis? Beach Boys?}
Black Crowes (on Main St. sign)
{TVs in window–Talking Heads? Television?}
The BGs (BGG grafitti on wall)
{Three women holding hands–the Go Gos?}
The Cars (parked)
The Police
The Doors (multi colored boards leaning on building)
{Red/pink bikini/underwear on manequin–Bikini Kill? electronica act Cherry Bikini?}
Seal (circus poster)
[next strip, left to right]
{what is in the Pet Shop cage?}
White Zombie
Dead Kennedys (B&W Pics of Bobby and JFK on wall)
Madonna (pic behind)
{Yellow guy leaning against wall?}
Great White (billboard)
{Two women kissing–Kiss? Modern Love?}
{bunch of folks in white dancing–Manic Street Preachers?}
{two guys in suits with guitar cases: The Band? Blues Brothers? Gansta something?}
Iron Maiden (crossing in crosswalk)
Radiohead (guy with boombox)
White Stripes (the crosswalk)
{two women acrobats Twisted Sister?}
Hole {or is it an oil spill?} (in the intersection)
Garbage (dumped trash)
Cowboy Junkies (shooting up)
Alice in Chains
{Blurry guy–Blur?}
[next to bottom strip, right to left]
Smashing Pumpkins
{Pink scissors–Scissor Sisters? Pink?}
Eminem (candy below scissors)
Sex Pistols (held by Queen)
50 Cent (US Half Dollar)
{Postman–The Postal Service? Men at Work?}
Pet Shop Boys (in front of window)
Skinny Puppy (on sidewalk)
[bottom strip, left to right]
Scorpions (on sidewalk)
Cake (ditto)
Guns & Roses (in the cart)
{There’s a plant in front of the cart–Robert Plant?}
{Something between the cart and the queen–what is it? Dinosaur, Jr.?}
{coming out of sewer grate–Rusted Root? Vines? (just at Queen’s behind)}
Queen
{what the heck is on her head?}
Eels
Prince (or King Crimson?–doesn’t look kingly to me)
Nine Inch Nails (Pile of sticks)
Matchbox 20 (again: duh)
Phish (in bowl)
Jewel (in, uh, the jewel case)
Cranberries (in crates)
Green Day (August 22, 2006)
Blind Melon on fruit stand
Red Hot Chili Peppers (ditto)
Korn (also ditto)
Lemon Heads (triple ditto)
Two folk claim to to have seen Ratt, but I can’t find it.
Two votes for Pavement–are we going with that?
A few have posted while I was typing, but I’m too tired to edit. Feel free to copy and/or paste, edit, whatever.
As to the obscure answers, feel free but I expect the more obivous the better, in terms of getting the answers they’re looking for.
A friend of mine suggested The Contortions, too, but they were more properly known as Chance & The Contortions and they’d also be way more obscure than just about every other group in the drawing.
And after a brief time of thinking the guys on the roof were Men At Work, my friends and I have come to the consensus that they’re The Carpenters.
There’s a rat right above the scissors.
Also, I mentioned that the Cars could also be Traffic.
Everyone in the picture = Village People
The guy hitting the pumpkin = Wham!
The zombie = Dead or Alive
The yellow guy = Living Colour?
Jewelry = Neil Diamond?
The “contortionists” = Spandau Ballet?
Interesting contest. Don’t have any bands to add, but I wanted to point out that certain clues probably do count as more than one band. In other words, Men at Work AND The Carpenters, The Cars AND Traffic, Smashing Pumpkins AND Wham!, etc…
What are the rules to the game? Are they only going with Virgin artists or are they taking any artists? Because if they are to the best of my knowledge Iron Maiden is not part of the Virgin group.
Other then that I can’t help, I just don’t want people going down the wrong path. Oh wait, maybe it’s the Black Crows on the Main street sign.
Madona & Child = Jesus & Mary Chain?