The song is, in fact called "Desire". The band singing it is Mr. Dyer's Daughters. They are three sisters. One of the sisters has since left the band, and they've continued on as a duo renamed Redd Hot Mamas. Their web site is http://www.reddhotmamas.com/ .
BTW, there is an error in the credits at the end of the film. In that bar scene, the band sings two songs, "Desire", and another song, "Daddy Tried". I am a co-writer of "Daddy Tried", which explains why I know so much about the songs and the band. In the credits, however, I am listed as the writer of "Desire", while my friend, Marty Axelrod, is listed as the writer of "Daddy Tried". They got it reversed.
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