my sister spent a lot of time in latin america. Here are a few things she brought back that i remember
Robi Draco Rosa (used to be in the boy band ricky martin started off in, went down a darker path - i believe this album, vagabundo, won awards - not sure if this qualifies since there were obvious grunge music influences happening here)
http://www.youtube.com/watch?v=UkAXSBjmJhQGypsy Kings (technically a french group, but this stuff is classic - largely responsible for popularizing flamenco music world wide)
http://www.youtube.com/watch?v=VcOvqpOWCwMOrishas (cuban rap group that rap that live in spain).
http://www.youtube.com/watch?v=50kxtUSGMgg