Brazil has always managed to put a unique spin on pop and underground music from around the world, and is one of the few 3rd world countries to have a lasting influence on pop music. Brazil's take on Jazz, Pop, Psychedelic, Punk, Hardcore, and Electronica from the US and the UK gets filtered through traditional Brazilian influences and comes out something unique unto itself. Luckily, some things never change. I found this band As Mercedes on myspace, and I can't tell you much more than they kick ass and you should listen to them on there myspace page: myspace.com/asmercedes
You should also check out these comps and impress your friends with all your worldly knowledge:
go to www.souljazzrecords.co.uk for more info about these comps, and a whole lot more crap. Only problem is, Soul Jazz comps are imports, and are usually around $23 for new vinyl. Their website however lets you listen to most of their catalog and has lots of info about the bands.