While I found a good amount of worthwhile music on day 1, day 2 was somewhat less useful.
The muical highlight of the day came early, at the CEA’s Digital Freedom Campaign DC day party, with These United States.

They were joined on stage for a couple of songs by Le Loup

Otherwise, just a couple of street scene photographs of note. No great finds yesterday as far as music.

Music seems to get significant support from the city of Austin:

The human parade milling about downtown Austin during SXSW may be more interesting in the aggregate than most– if not, any– of the bands performing.