Hey, LT, if you decide to go, email me. I might have a lead on accommodations for you.
Since one just cannot have bad time at SXSW, I'd recommend booking a hotel (outlying hotels still have rooms) prior to band confirmation. If SXSW housing bureau shows no availability, you might want to call the hotel directly. Also, Craigslist for Austin has some good apartment/house deals for that week.
Thanks to board suggestion from last year,
www.donewaiting.com turned out to have the best info on unofficial day-showcases, and parties. With an estimate of over 1,000 bands in six days last year, even jaded boardies might find a band or two to enjoy.