There are multiple bands with this name:

1) Liquid State is a San Francisco bay area based band, a collaboration between vocalist Jennifer Wilde and multi instrumentalist Mark Fassett. The music is mostly acoustic, featuring acoustic guitars, upright bass, drums, hand percussion, piano, trumpet... but also synthesizer and electronic beats. Their self released debut CD, "Late Bloom," was released in March of 2008. Liquid State sounds something like Suzanne Vega, David Sylvian, Beck's "Sea Change," Hem, and Sufjan Stevens.

2) Liquid State is a collaboration between Rich Mowatt and Andy Bury (better known as Solarstone). They released one single in this guise called Falling in 2002, featuring the vocals of Marcella Woods, on Perfecto. Read more on Last.fm. User-contributed text is available under the Creative Commons By-SA License; additional terms may apply.