A great venue for improvised comedy and music.
Okay, first off, I'll freely admit that I perform in the shows I'm talking about in this review, so take that how you want to.
The Carousel Lounge is pretty unassuming for a circus-themed bar. They serve beer, and that's about it. You can bring your own liquor in. It's usually fairly empty, with a small crowd of locals lingering near the bar. The Carousel staff are unobtrusive and friendly.
On the 1st and 3rd Tuesday night of the month from 9:30 to midnight, Jerm Pollet (of The Sinus Show fame) and his band The Total Foxes put on a night of music and improvised comedy. The Total Foxes always perform, but Jerm usually invites 3 or 4 other acts as well. There's never any cover charge, and the night is finished off with a rousing game of Family Feud... featuring questions from 1977.
My comedy troupe, Parallelogramophonograph, performs improv there during the 1st Tuesday celebration. The times we've done it (about 5 times now), it's been a blast. We play improv games, take audience suggestions, and toss back our share of Lone Stars.
Few places in Austin are so low-key and relaxed. I highly recommend it.