The song Laura Lee dances to in the flash back is "Kool Thing" by Sonic Youth. The movie's title comes from their 1988 album, though "Kool Thing" appeared on their 1990 album "Goo." A major character is named Thurston, which, continuing the theme, is likely taken from Thurston Moore, the band's leader.
In the "Fun With Experiments" scene, the song that plays throughout the montage is "Carmensita" by Devendra Banhart. Kat Dennings (who portrays Caroline Wexler) was in the music video for that song.