1. Go to Sixth Street, any night.
2. Follow your ears to the screaming blues guitars
The live music is amazing. In our business we rarely get away on real weekends, which means most places we go are dead. Not Austin!
On Mondays the Eric Tessmer Band plays on 6th St. at a bar called "Friends". If you like Stevie Ray Vaughan/Eric Clapton/Jimi Hendrix blues, that's the place to be. We only go to Austin on Mondays now, just to see his band perform.
And, incredibly, there is no cover to get in. I've paid big bucks to hear lesser musicians -- which is what we love about Austin. There are bands like this all over, playing for tips and drinks.
If you have money to burn, stay at the Driskill Hotel. It's a palace, right on 6th Street. It sure makes the crawl back to bed easier...
If you're on a budget, and don't mind chain motels, there's a La Quinta a few blocks away. It's uphill (literally) from all the bars, though, so be prepared for a heart attack-inducing stagger home.