You are incorrect. Jimmy Wolpaw directed and wrote the movie, yes.
The delightful folk songs were written by leading man Stanley Matis. He also co-wrote some of the script. NRBQ and The Young Adults also showcased some of their talents here. Captain Lou Albano is great in this movie.
It was filmed in and around Providence, Rhode Island. The club was the original Lupo's Heartbreak Hotel which was torn down shortly afterward. Luckily, it was rebuilt at a new location, 79 Washington Street.
I think this movie is in a class by itself, and is a bit ahead of its time. Time for a multi-commentary DVD with all the trimmings. Why it's not shown once in a while on IFC or Sundance is rather puzzling. It rules.