QUOTE(stardustsa2008 @ Oct 26 2008, 10:19 PM)

I presume the recording side of doing this is the illegal bit?
Er....yes.
Sampling live and working with a track to add effects is 'ok' so long as you don't store the track / sample as a new recording.
So, by example, if you were to sample a riff from a dance record (live) and play that riff in a loop on the night - ok.
But if you were to store the loop and change the arrangement of the track, record it and then play it live, effectively, you are circumventing the original rights of the recording.
Seek permission, that's a different story.
Bedroom DJs are of course 'exempt' from such personal pleasures (

) unless of course they earn pocket money from performing in front of the annual family gathering which according this statement here would be deemed a public performance:
In music licensing terms, 'public performance', means the playing of any music to a group of people, irrespective of whether the function or event is ‘private’. Another licensing organisations stance is slightly different and apparently understand the meaning and implications of what a private function is, and the powers of those who can eject the uninvited I guess! Interesting, eh?