I just came across the best website, it's called jitterbug.tv (clickable link) and it's where you can listen to all sorts of great independent kids music. I'm getting all sorts of ideas for CDs to add to our collection just by listening at this great site. It's also enjoyable to just have some nice music playing in the background while doing other computer stuff.
Have a listen and let me know your favorites so we can add their CDs to our library collection. So far, I'm liking Dog on Fleas, The Dreyer Family Band, and Dennis Caraher. (I just started listening in the "D"s.)