Readwriteweb has a roundup of muso tools and websites which it's named the struggling musician's toolkit.
"Despite grumbling from big-name artists and record labels around rampant P2P 'piracy', there's never been a better time to make money from creating music tracks of your own. There are dozens of useful websites - some completely free to use - that serve budding musicians and seasoned tourers alike. In this post we cherry-pick the best online tools at your disposal to make music, find an audience for it, and then make money from your efforts."
There are tips on websites to help you if you're a "Johnny No-Bandmates" or want to use the web to jam with someone online. It also offers up some free web tools including an alternative to Apple's GarageBand. Once you've created your masterpiece, it offers up some music networking and promotion sites to try to help you find an audience.
For the musos out there - I'd be really interested to find out more about tools or websites which you find useful - especially if they're local or have a decent Australian user base (contributors or listeners). Leave 'em in comments please!
Struggling musician's toolkit [readwriteweb]