Here are some songs where the name of another singer or group is mentioned inthe lyrics. These are all of the top of my head, so I will probably post a few more at a later time!
http://www.youtube.com/watch?v=lYwZzmCtIQQ
Violent Femmes & Del Fuegos
YouTube - Ben Folds - Rockin' The Suburbs
Quiet Riot, Bon Jovi & Michael Jackson
http://www.youtube.com/watch?v=RHsDa9_HSlA
Neil Young
YouTube - ROCK AND ROLL HEAVEN RIGHTEOUS BROTHERS MIKE
Too many to mention!
YouTube - Commodores - Nightshift
Marvin ***e & Jackie Wilson
There are plenty more to choose from!