"Funky" (related to the musical genre, attractive, an unusual, sensual, groovy style often associated with black American culture)
"Fresh" (new and exciting)
"Flava" (flavor, meaning taste or style)
Note that most of the online dictionaries list many definitions for "funk", all of which are valid but don't really apply here. Funky is (or at least was) generally positive when used in slang. Also, like "cool" or "hip" (or whatever similar expression the kids are using these days), it's difficult to precisely define.
Keep in mind the movie is almost 20 years old, and these musicians, while still around, aren't quite as cutting edge now as they were then. The same goes for the slang used in the movie -- if you use it today, it might just make you sound old.