There's a couple of guys here at UEA who have a pretty sweet radio show on monday nights (9pm, http://www.livewire1350.com/); they call themselves Gold Soundz, after the Pavement track I guess. A friend of theirs has just been signed to a small London based label apparently; he makes sort of trippy grunge under the moniker GROSS MAGIC, and it's awesome. He has a demo called 'Teen JAMZ', and the standout track for me is the incredible 'Sweetest Touch'; it's three and a half minutes of Nirvana-esque bass, laid underneath a wailing riff and cutesy, drawling vocals. Unfortunately it's not on youtube haha, but you can listen to it, as well as the rest of the demo, on his myspace at http://www.myspace.com/grossmagic.
He also has a track/home-made video on youtube called 'Waiting for You', which is a more synth-orientated effort. I think I personally prefer his music when it has a bit more of an edge to it; the combination of cutesy falsetto and twinkling synth is a bit overwhelming, but it's definitely still really danceable.
GROSS MAGIC - Waiting For You