Grease: The Not So Original Soundtrack
From The Motion Picture

Grease: The Not So Original Soundtrack compilation cover
  

Release Notes:

Dummyup Records, CD, 1999
  

Band members:

Lance (guitar/vocals), Gardner (bass), Andee (drums), Kelly Green (additional vocals)
  

Songs:

Boris The Sprinkler - Grease
Nothing Cool - Summer Nights
The Sheldrakes - Hopelessly Devoted To You
J Church - You're The One That I Want
Kung Fu Monkeys - Sandy
Mixal Pricks - Beauty School Dropout
Atom & His Package - Look At Me I'm Sandra Dee
Ferd Mert - Greased Lightnin'
The Letterbombs - It's Raining On Prom Night
The Bicycles - Alone At The Drive-In Movie
The Larry Brrrds - Blue Moon
Fighting Animals - Rock 'n' Roll Is Here To Stay
The Connie Dungs - Those Magic Changes
Blanks 77 - Hound Dog
The Dread - Born To Hand Jive
The Parasites - Tears On My Pillow
Violent 9 - Mooning
The Rehabs - Freddie My Love
Dirt Bike Annie - Rock 'n' Roll Party Queen
Mary Me - There Are Worse Things I Could Do
The Nobodys - We Go Together
The Sprained Ankles - Love Is A Many Splendoured Thing
Jinx - Rock 'n' Roll Party Queen (Reprise)
  

More info:

According to the man from Dummyup: "Lots of big name (and not so big name) bands doing the entire soundtrack to everyone’s favorite Broadway musical turned kitsch fest, GREASE. It’s 50’s retro done via 70’s disco and covered by 90’s punk bands!"

An additional nugget of information: the bass player for Nothing Cool (who do the other 'classic' from that film) was Jeff, also played bass for J Church for several years.