Smash hit

"We're a supergroup, err, like Crosby, Stills and Nash" jokes Super Furry Animals mainman, Gruff Rhys, in his soft, Welsh burr as his new side-project, Neon Neon come on stage. Made up of Rhys, Boom Bip, electro artists from LA and unknown singer-songwriter, Cate Le Bon, it's a slight exaggeration but as we stand by a glittering swimming pool, with the sun setting behind the band and Austin's downtown skycrapers lighting up in the background it doesn't seem implausible we're about to see something special. And that we do. Their first ever live show, everything has gone wrong, their bass is broken die to a string breaking. Half their collaborators haven't found the venue, a Lynchian-style members club perched on a hill, the Elk Lodge.

Nevertheless, their shiny, 80s-inspired synth pop, is the stuff of magic. It shouldn't be, they have a keytar and ridiculous drum machines. Their upcoming album is a concept album about the life of playboy car engineer and fraudtser, John De Lorean. Yet it all comes together in a surprisingly moving way. It helps Gruff looks like a geography teacher and has one of the most liltingly affecting, and Welsh, voices in pop. PG

4pm, Thursday 13 March

Despite their name, Canada's Holy Fuck have been booked to play Oprah's chef, America's sweetheart Rachael Ray's Feedpack party on Saturday. This warm up proves why. Unlike a lot of the barrrage-of-sound freaks here, they have discernable tunes. With a variety of keyboards, instruments, machines and weird things like kitchen knives and film tape, they make an almighty visceral steam freight of sound. Euphoric wig out pop that should cause a fair few Oprah Winfrey fans to choke on their teas. PG

2pm, Thursday 13 March

In a dusty backyard, the only band from Israel at the festival, hard rockers Monotix are doing their country proud. A three piece, they're channeling the spirit of the Sonics and Thin Lizzy. They have ditched the make-shift stage for playing in the yard. Lead singer, Ami Shalev, a tiny ball of chest hair and muscle, hurls himself, every vein popping in his head. Shalev has lots of party tricks, including a curious habit of putting his microphone down his trousers. At one point he even finds the time to to grab a bicycle from somewhere, which he then drives through the crowd and has to be pulled out of a chicken shed. Not to be out done, the drummer is hoisted on to the crowd, pounding away on a drum held by a surprised metal head who doesn't know whether to laugh or cry. Austin, whose unofficial town motto is 'keep Austin Weird', have a new bonkers mascot. All of this and it's only lunchtime. PG

10.30am, Thursday 13 March

Lou Reed Keynote Speech

It's early but if anyone can get SXSWers out of bed it's Lou Reed. Introduced to a standing ovation, Reed's ostensible theme was to talk about the new Julian Schnabel film documenting last year's staging of his 1973 Berlin album. Screened the previous day, the only problem was none of the SXSW music festival goers would have been able to go. "So" Reed challenged, "How many of you actually saw it?" With barely five hands out of a few hundred going up it seemed like we might be in for a rough ride. Equally inauspicious was Reed's interviewer, Hal Wilner. A great fan and friend, Wilner's style of interviewing is best described as 'Hallmark' ie. when not stuttering, cringe-worthily gushing. "This is horrible" Wilner moaned at one point, exasperated by his own ineffectiveness as an interviewer. " I can see the headlines now" Reed joked, "in a blinding moment of confession and integrity. Wilner cries Reed interview was HORRIBLE."

Effectively left to interview himself, Reed, trim and in a t-shirt, in fact proved a surprisingly jocular and forthcoming raconteur.

"When I released Berlin it was called 'horrible', most depressing album ever made." he recounted drily, "Today, even though Berlin has toured Europe we can't get finance for it in the US. It showed in New York but guess what? It's not being shown anywhere else. Not even in LA...music biz town. It's why Julian decided to film the damn thing." Music publishers ("Never sign away your publishing. It's where the money is"), and mp3s also got in the neck, "It's an example of technology making it easier to make things worse. You wouldn't want a movie the size of a postage stamp. Who wants music reduced to the size of a pin drop? You get more music but it all sounds bad".

Other choice Reedisms

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