The Make Magazine blog had an article recently about making up fake albums in a fun way. The gist of it is this (quoted straight from their site):
1. Go to Wikipedia and hit “random” and the first article you get is the name of your band.
2. Go to “Random Quotations”. The last four or five words of the very last quote of the page will be the title of your new album.
3. Go to Flickr and click on “Explore the Last Seven Days”. The third picture, no matter what it is, will be your album cover.
Here's the one that I came up with when I tried it: The new album from Innocent Venus, titled "Sane Beyond a Reasonable Doubt". Eerily believable, isn't it?