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+1 for Hundred Reasons.
Hipsway.
They shat all over Curiosity Killed the Cat but never got the recognition.
Odd commercial-band-that-I-admire-for-not-being-successful.
Whatever happened to The Beautiful South?
hmm pearl jam were preety big, thats like me saying underworld, maybe
oh does anyone remember big area and tpau? roxette, all coming back to me now ๐
edit
**** me memory failing me, was then jerico, big area was a song..
I saw tpau and they were excellent! Carol Decker - mmmmmm! She was feisty.
Coast to coast and Matchbox, what ever happened to rocakbilly? And psychobilly?
The Wannadies - remembered for You And Me Song, but had so much more good stuff. Sadly broken up now.
Prefab Sprout.
Presidents of the united states of america.
Millions of Peaches ๐
There's a bunch of bands mentioned who were never 'underrated or forgotten', like Big Country, for example.
However:
The Movies were a great 70s/early 80s band that nobody remembers. I discovered them by accident in a job lot of old records. Very cool. The ultimate forgotten band IMO.
The Movies, excellent live band, and they had some really good albums, too. What you may not know, is that they were Joan Armatrading's band when she started out, and the first time I saw them was supporting Supertramp along with Gallagher & Lyle at Bristol Colston Hall. Saw The Movies a few times after that, including at The Brillig Arts Center in Bath, and we went backstage afterwards chatting and eating tubs of ice-cream. Really would like digital copies of their albums.
Someone mentioned Curve; love that band and the icy Toni Halliday. Again, saw them two, three times, and they were never less than excellent.
Several more little known or forgotten bands:
Thrum
The Julie Dolphin
Linoleum
Tiger
Drugstore
Star 69
Seen all of them too, at one time or another. Drugstore have just got back together and released an album.
Sparklehorse.
How many famous bans are in the previous posts?
How 'bout -
Thee Hypnotics
Higher intelligence Agency
Speech Debelle
The The
Death from above 1979
what ever happened to the sensless things ??
plus, EXCELLENT call on Sparklehorse
slainte ๐ rob
Mansun
I saw tpau and they were excellent! Carol Decker - mmmmmm! She was feisty.
I'm a fanboi. Got everything they've ever done. I used to have a T'Pau website and everything.
Mansun +1
Still listen to Attack... quite a bit. The next album, Six, was awful though ๐
I used to have a T'Pau website and everything.
๐
[i]Mudhoney-so much better than Nirvana.....[/i]
Thank you MKCHRIS, I thought I was the only person who believed this.
A couple more come to mind -
and a band blessed with possibly the most astonishing, exquisite voice in pop music ever (plus a bloody good rhythm section) -
slainte ๐ฏ rob
Mansun +1Still listen to Attack... quite a bit. The next album, Six, was awful though
Yes, Legacy was one of the better ones from that album, got attack on the mp3 player and got Mansuns only love song as a ringtone on my phone.
Kevevs - Member
Sparklehorse.
Ahhh, the late, and very sadly missed, Mark Linkous. He was so pissed at a Fleece gig in Bristol he forgot one of his own songs, and a roadie had to catch him as he toppled off the end of the stage after the main set. Still did several enchores though. He did apologise in a later interview, though, bless him.
+1 for Mudhoney being better than Nirvana, and so were Pavement.
Screaming Trees were another wonderful band, their stuff still gives me chills.
Oh damn! How could I forget Dark Star;
Still got an unused ticket for Mansun from 1997... (shite video mind)..
The La's
I see John Power in a pub I drink in now and then. Nice bloke. Pretty sure I've seen Peter Hooton out of The Farm in there too actually come to think of it. I know they're mates.
Seen that Billy Bragg last night. ๐ Funnily enough, almost on this very road!
Has anyone mentioned Curve yet?
Elfin, yes, twice. Please try to keep up at the back there. Questions will be asked at the end.
Oh.
+1 on Drugstore. Really, really liked their eponomously titled album but the rest of their stuff left me a little cold.... Didn't know they'd reformed - will give the new album a listen.
The Delgados were a wee bit up themselves but well worth a listen.
The Ozric's are still going. Eat Static started as a side project for Merv & Joie until they went full time years ago, eat static is just Merv now afaik.
Shed Seven
Sleeper ... still recall Louise Wener, in her vest-top, steaming at Newcastle's Riverside. What a gig !
renton - Memberwhat ever happened to the sensless things ??
They got dropped, then Mark Keds ran away from home to join the Wildhearts (a dream lineup that lasted for several days)
Ah,on the subject of the 90s... [i]Sing me a simple song[/i]
Or Pitchshifter before they went wrong. Oh, Pitchshifter ๐
Sleep
Jesu
Godflesh
Fine Choices Tazzy ๐ Though I think apart from Dragonaut, Sleep are a bit shit. The Dopesmoker album is my no.1 "most overrated thing" possibly ever. It's so rubbish, even if you're baked off your tits.
My choices are something like
Lucero
The Bronx are doing OK for themselves. Guess it helps when you can be your own support band too 
one minute silence (nearly ready to gig again, currently in the studio)
hundred reasons (have been gigging again, and if you're into their stuff... or the excellent 'Reuben' then check out 'Freeze the Atlantic' which are currently made up of ex reuben and ex hundred reasons)
the crocketts.
sikth (if you liked sikth then check out 'Ailiases' the main guitarists new band)
+1 for Mansun...although I thought Six was a total masterpiece...just took a lot of effort to realise it ๐
The Chameleons...never got the recognition they deserved.
i quite liked this one from The Beautiful South :
also this was a favourite of mine
Has anyone mentioned Curve yet?
*puts hand up, that was me Elfybaby and then the count*
also this was the best one when they were The HouseMartins..just a brilliant vid !!!!! 
didn't one of the housemartins go away for being an arsonist?
The Bronx are doing OK for themselves. Guess it helps when you can be your own support band too
haha do they tour with their mariachi band as a "support" then? ๐
Garbage
Inspiral Carpets
Lemonheads
Ohhh, can I...
The Sundays
Great White
Tesla (as mentioned)
White Lion
Ratt
Dokken
Sister Sledge
The Saw Doctors
Refering back tot he OP I too watched the Waterboys and they've been a fave of mine for many a year now..
boy hits car
Carter USM got close to mainstream success but never quite made it. They had a No.1 album but very few people can remember its name, let alone any of the songs on it.
I jumped ship after 101 Damnations and 30 Something...even 20 years on, I still love titles like Sealed with A Glasgow Kiss, Only Living Boy In New Cross, and 24 Minutes From Tulse Hill
Sleeper
Bluetones (I know they're still going but Return To The Last Chance Saloon is one of the best albums ever IMHO)
Cat Empire - more people need to be made aware of these
Seahorses
The Stone Roses
James
Mindy Smith
and
Jason Mraz