Jamendo is a place for artists from around the world to post their work under the Creative Commons license.
Users can download artists' songs from Jamendo a variety of ways including http and eMule and BitTorrent or can listen to them using the webplayer.
Jamendo also allows users to donate to artists that have chosen to receive donations. (Minimum amount to donate is $5)
Artists can choose to either receive donations, in which case Jamendo will keep a small portion of the donation (website says as little as 50 cents) or they can choose to receive a portion of the revenue from Jamendo's ads.
Selection is fairly decent, a lot of songs from non English speaking countries as well.
Web Interface is very nice uses AJAX and has a nice Web 2.0 feel to it.
Artists also get some income from this via donations or shared ad revenue