I got a collection of four CDs called "Vita Italia" with songs from Paolo Conte, Matia bazar, Marino Marini, Luigi Infantino, Sergio Bruni, Claudio Lippi, Pino Donaggio, Adriano Celentano, Vasco Rossi, Dario Sebastiani, to name a few.

Are these well-known in Italy? For me I bought the CDs primarily because I am learning the language, and thought it might be a good idea to listen to Italian music on my MP3 player....

Yes the above names are famous in Italy.
Here is another song I liked ( It is 20 years old now )
Sergio Caputo
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All these singers are very famous.Above all Vasco Rossi is considered the best.The greatest rockstar in italian music.
His career started at the beginning of the 80s with "Bollicine" and "Vita spericolata. Soon he became the lyricist of his concerts. Vasco Rossi's songs are always stories about complicated and angered love, about rises and falls.
One of Italy's best-loved artist,Adriano Celentano, has been equally successful in film and music. His debut single was 1959 ( Il tuo bacio)and he matched its success with the million-selling (24000 baci)around 1960,Il ragazzo della via Gluck (1966), Svalutation (1970),Atmosfera(1980), I miei Americani(1984),La mia Storia(2004).Celentano continued his career with his work in Italian cinema like"Segni particolari bellissimo", "Il bisbetico domato","Yuppi Du".
Paolo Conte is another "big"of our music.He tells us about himself and his roots and puts deep feeling into sardonic smile.
Matia Bazar is a band was founded in Genoa in 1975, but later it established in Milano.The first sigle " Stasera che sera"was the first single. Antonella Ruggiero was for many years the vocalist of the band, but now the band has hired a new vocalist, Laura Valente. The most part of their success was in the early 80's recording "Il tempo del sole"in 1980,"Tango"in 1983,Melancolia in 1985, "Melò"in 1987,until the last Matia Bazar Best of Platinum in 2007.
It is a good idea download the songs in your MP3 and I'm sure, in short time you'll improve your Italian.:)

These songs are popular however none are my favorites!