Arguably known as the nucleus of the world's art scene, New York is home to some of the most famous music venues.  From stadiums like Madison Square Garden and Rockefeller Center, to old time-y blues bars like Terra Blues, there exists a music joint for every taste. 
 
In my opinion, the most exciting venues are those that feature up-and-comers; the artists responsible for the downtown hum, rocking the city that launched 1,000 bands.  To this end, I've compiled a list of what I believe to be the top 10 music halls across the 5 boroughs based on sound quality, setting, scene, vibe, and booking.
 

#1  Town Hall
123 West 43rd Street
New York, NY 10036
 
Over 80 years old, this breathtaking, classical auditorium was founded by a group of suffragists.  The large, yet intimate setting reflects the goals of its founders; there are no box seats and thus, "Not a bad seat in the house."  The acoustics are sublime and the forward-thinking venue celebrates all performing arts.

#2  The Bowery Ballroom
6 Delancey Street
New York, NY 10002
 
A beautiful space, accommodating about 500 people.  VIP seating was recently removed to allow more concert viewers.  The ballroom is known for its sound and room design.  The sexy, dimly-lit downstairs bar is a great place to congregate before and after shows.  Recent and upcoming acts include: Phosphorescent, RJD2, No Age, and The Long Blondes.
 
#3  The Living Room
154 Ludlow Street
New York, NY 10002
 
Artists in residence are consistently excellent, including electric guitar virtuoso Jim Campilongo, and retro-rock band Pete and J.  Norah Jones still plays secret shows at The Living Room, not straying far from the venue that will long consider her part of the family.  Sound quality is far above par, as is the setting; roughly 30 cocktail tables (ideal for groups without losing the cozy factor), genuine regulars, and a mellow staff that just might remember your name.

#4  Rockwood Music Hall
196 Allen Street
New York, NY 10003

Fairly new to the scene, and best described as a listening room/wine bar.  Owner Ken Rockwood quit his law career to open this venue, his goal to create a room with perfect acoustics.  He can be found there doing sound almost every night.  Due to the size of the room, terribly hard-hitting bands need not apply.  Recent/upcoming acts include: Amos Lee (secret show),  Mieka Pauley, and Michael Brunnock.
 

#5  Music Hall of Williamsburg tied w/ The Mercury Lounge
66 N 6th Street                            
Brooklyn, NY 11211                     
217 E. Houston StreetNew York, NY 10021 

Both run by the Bowery Presents, a concert promoter also responsible for shows at Webster Hall.  Catch big name indie acts at either of these venues.  Upcoming shows include:  tapes 'n tapes, O'Death, and Bishop Allen at Music Hall.  Grand Buffet, The French Kicks, and Ambulance LTD at Mercury Lounge.
 
 #6  Joe's Pub
425 Lafayette Street
New York, NY 10003
 
Located in the Public Theatre Complex, Joe's Pub boasts theatre quality lighting and sound, plus a full dinner menu.  The incredibly diverse booking sets this venue apart from the rest.  Impressive past performances by:  Aimee Mann, Dolly Parton, Elvis Costello, Macy Gray, and Amy Winehouse's U.S. debut in 2007.
 
#7  Warsaw
261 Driggs Avene
Brooklyn, NY 11222

Full name:  Warsaw at the Polish National Home.  Full of old-world charm, cheap beer, and friendly staff members.  Past performances include:  Lily Allen, The Lemonheads.
 
 
#8  The Cutting Room
19 W 24th Street
New York, NY 10010
 
Semi-fancy performance space and restaurant owned and managed by Chris Noth, better known as Mr. Big from Sex And The City.  Past performances include:  James Taylor, Carlie Simon.  Joan Rivers performs Wednesdays.
 
#9  Southpaw
125 5th Avenue
Brooklyn, NY 11217
 
Loud-volume, spacious room often filled with those who prefer their beer out of a can.  Line ups are diverse, with weekly DJ's and Indie bands alike.  Definitely worth the trip to Park Slope.
 
#10  Zebulon
258 Wythe Avenue
Brooklyn, NY 11211
 
Cool, old space near the water of Williamsburg's faux-industrial edge.  Zebulon features world music and popular hipster bands, as well as a great vibe with dancing encouraged.