There are many actually, I wouldn't call them Music Games but actual software to create or recreate music. "Sound Forge 5.0", I suppose its called. Then there is ACID series, I believe its related to "Sound Forge". The easiest (but still effective, FUN) is the EJAY series. There is Dance Ejay, Hip Hop Ejay, and Trance Ejay. I have the Dance Ejay, which is quite nice.
Then there is "Fruity Loops 2.5 and 3".. which doesn't let you do much when it comes to make music....but its mostly mixing and re-mixing stuff.
There is also "Rebirth" series which is quite amazing. Most of these software is used by professional people, so they might be a little hard to use, but the results are quite stunning.
There is also "Groove Maker".
Hope all that helps.
I am actually looking for "Music Generator" for the PS2, I love messing around with that. I have MTV Music Generator 2000" for the PsOne. I just hope I find this one. And Music Generator 2003 is coming out soon too. Gonna buy that for sure.
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