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Don't have time to read through all the replies, so sorry if I duplicate suggestions other people have already given.
Electric Earth Coffee Shop - Small coffee shop on West Washington (I think) that sometimes does music shows.
Argus Bar - Right off the capitol square...they started doing music and such in the (very spacious and nice looking) lower level of the bar, and probably have some dates available
Madison's Downtown - These guys might consider letting you use their lower level that's usually used as a wanna-be coastie "club" dancefloor
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