We're a bluegrass family! My youngest dd plays banjo and is learning harmonica, older dd plays fiddle, dh plays guitar and washboard, I...have no musical ability, so I earn the bucks for the lessons! We love the variety of bluegrass--you can get the traditional, the rockabilly, the southern rock style, gospel, and everything in between.
In addition to the ones mentioned above, here are some that we love listening to:
The Wiyos
http://www.youtube.com/watch?v=_qhVYPKBxWw
I have to second the recommendation of Old Crow Medicine Show. I haven't heard their lastest album, but man, their older stuff is fantastic!
http://www.youtube.com/watch?v=O2vJUadjdmo
The Wilders
http://www.youtube.com/watch?v=n55_Hnp9QOU
Split Lip Rayfield (they are still around, even though Kirk is no longer with us)
http://www.youtube.com/watch?v=cZr9BxW2R_k
It's all good (and this is the first of several parts), but one of my favorites starts around 6:38
The Byron Berline Band with Barry Patton on the bones
http://www.youtube.com/watch?v=H2FUFuz96aA
Barry starts in at 2:30--I always love watching him play live--it's just crazy!
Earl Scruggs (The Godfather of the Banjo) on David Letterman with many other musicians including Steve Martin--who is a bada$$ banjo player as well
http://www.youtube.com/watch?v=icMTVV5Lwaw
We pretty much worship at the alter of Earl Scruggs in this family. He's just freakin amazing.
Tony Triska and Bela Fleck are great, too.
http://www.youtube.com/watch?v=1jn3K...eature=related
My dh is also into Django Reinhardt and Stepham Grappelli's Gypsy Jazz. Here's a group I think called the Stephanie Valentine Trio doing a fine job at it.
http://www.youtube.com/watch?v=uBw49...eature=channel
Where do you live? Bluegrass is best live. We hit a major festival in our area every year (Walnut Valley Bluegrass Festival in Winfield, Kansas) and see so many acts. The best is the informal stuff that happens on the off stages at 1am, or around the campfires after a little too much to drink. Here's some action at the Carp Camp a couple of years ago at Winfield.
http://www.youtube.com/watch?v=v3Mit7jiTzUhttp://www.youtube.com/watch?v=GdOSK...eature=related
The cool thing about the different campgrounds is that you just wander around with your kids and your instruments and/or your favorite (usually alcoholic) beverage, listening to music, joining in if you want. Next year we're getting walkie talkies (our cell phones didn't have the best reception) so that the kids can just run around without us. Honestly, it's a wonderful event, and there are hundreds just like it around the country.