I discovered Jack Conte, internet musician, several weeks ago and I am completely in love with his music and his videos on youtube. Plus, he's incredibly adorable, with his flailing arms of enthusiasm.
His videosongs are made in a room in his house and he plays every single instrument used in the song, including a teeny tiny paino that I'm sure has some kind of official name, which is not teeny-tiny piano. Not only do you get to watch him make music, there's occasionally a little random add-on at the end of the song.
On his youtube acocunt, he's posted the 2 rules for his videosongs:
1. What you see is what you hear (no lip-syncing for instruments or voice)
2. If you hear it, at some point you see it (no hidden sounds)
He's phenomenal and you can find him here.
He's also got a myspace page and he has a music store where you can buy his mp3s. I recommend the big red "Buy Everything" button-all of the vid songs and his two EPs for $15. It's a fantastic deal.
Go. Listen. Watch. Buy.