SAN JOSE MERCURY NEWS Copyright 1993, San Jose Mercury News DATE: Friday, February 26, 1993 PAGE: 20 EDITION: Morning Final SECTION: Eye LENGTH: 28 in. Medium MEMO: R ECORDINGS Individual reviewers' bylines at bottom of each review ROCK JELLYFISH ''Spilt Milk'' (Charisma; CD and cassette) (****). It's inevitable that rock 'n' roll innovators Paul McCartney and Brian Wilson would become so out of touch that they eventually become upstaged by the kids weaned on their music. Jellyfish's ''Spilt Milk'' is as compelling a homage to the Beatles and the Beach Boys as there is. Though the record is frustratingly derivative, the sprawling production and loving performances ultimately win over skeptical listeners. Jellyfish's 1990 debut album was flawed by indifferent production and a paucity of realized melodies. ''Spilt*Milk'' corrects those problems with a tribute to production coups of the past. Throughout the 12 songs featured here, singer-songwriter Andy Sturmer and Roger Manning salute the Beatles' ''Sgt. Pepper's Lonely Hearts Club Band,'' Queen's ''A Night at the Opera,'' the Beach Boys' ''Pet Sounds'' and Supertramp's ''Breakfast in America'' - four of rock's sonic masterpieces. Indeed, ''Spilt Milk'' is so heavy on production sleight-of-hand that the melodies sometimes collapse beneath the weight of the sound. For instance, ''Joining a Fan Club'' features a vaudeville piano introduction that gives way to a bruising rock chorus . ''New Mistake'' mixes jangly guitars, castanets, baroque-sounding string embellishments and hard rock flourishes that disappear as suddenly as they surface. - Bruce Britt Los Angeles Daily News