http://magnatune.com/I just found this tonight, and I am extremely impressed. You can listen to all of their stuff through streaming audio. If you like it, you can download the album in either a .wav or .mp3 zip file. You pay by credit card.
Now here's the kicker.
Half, yes half, of the money you pay goes to the artist! You can even choose how much you want to pay for the album! $8 bucks is the recommended amount for the album I'm liking so far, and after I listen to the whole thing I'm probably going to buy it to test things out. You can actually pay more or less for the album, knowing that the more you pay, the more the artist will pocket.
No major artists on there, but hey, I can listen before I buy so I know I'm getting music that I like.
What a freakin' concept. I'm still trying to look for the catch, but I'm not seeing it so far.