Have you two listened to New York Noise comp. in two volumes? The first is called something like 'Dance music from New York underground' and contains Liquid Liquid, Lizzy Mercier Descloux, DNA, Mars, Contortions, Bush Tetras etc. focusing more on the funky sound. Vol. 2 is just titled as New York underground from 1977-1984 and has Sonic Youth, Glenn Branca, Rhys Chathm, Del-Byzantees, Ut, Static and many more that I didn't know about. The big revelation for me was a band Red Transistor. I've only heard of them before, but never actually heard the music before listening to this comp. Great stuff!
As for my favorites, definitely Theoretical Girls and Mars.
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