Olympia [1] has an active music scene. The Capitol Theater (206 E. 5th, 360/754-5378) is the biggest alternative-rock venue.
Other downtown bars with music include Fishbowl Pub & Café (515 Jefferson St. SE, 360/943-3650) and The Spar (114 4th Ave., 360/786-1823).
Gay-friendly Thekla (116 E. 5th Ave., 360/352-1855) is a popular dance club.
Links:
[1] http://www.moon.com/destinations/washington/south-puget-sound/olympia