Lots of these have been mentioned, but I'm in a listy mood
Echo + The Bunnymen - all time moody greats
Wild Swans - moody greats that no one's heard of
Pale Fountains/The Strands/Shack - Mick Head is a genius
Icicle Works/Ian McNabb - his solo stuff is quality, too
Top - had a decent album called Emotion Lotion, very "madchester", 1991
The Hoovers - another early 90's pop/rock outfit
The Rain - quality early 90's band! Two smashing singles and a good album!
The Real People - quality 90's britpop! Supposed to have something new out soon...
The La's/ Cast - enough said really
Pete Wylie/Wah - Heart as Big as Liverpool, what more can I say?
Tambourines/16 Tambourines
The Pies - Underground nutters who seem to do more graffiti than songs. I have a 2 track cd single, which afaik is all they've ever released
Amsterdam - fronted by Ian Prowse who has a cracking emotional voice, check out "Does This Train Stop on Merseyside?" Which is about Hboro...
Anathema - death metal \m/
Deaf School - art rock loonies. Also genios
The Maybes? - Indie Rock, bit mediocre
The Troubadors - see above
Benny Profane/The Room - 80's indiepop
Not gonna mention all the pop shite like ATomic Kitten.
VIPER records does 3 cd's of "Lost" liverpool tracks which are essential purchases if you ask me, you can order on their website