What's the deal with using music from local bands playing cover songs?

You aren't allowed to use existing music unless you got permission from the original composer (or his/her publisher), even if it is not the original recording.

As a band you are allowed to play covers of songs on stage without having to ask permission or anything.

When you record a cover of a song, it goes the same as above: You have to get permission from the original composer or publisher.

Hope this helps!

Thanks for the help. I'm just desperate right now. All of the stockmusic I've been looking at it sounds so stocky and synthetic. I'm not finding anything I'm looking for. Any suggestions? I'm willing to pay extra for decent music...

I'm going to assume you've already been through SoundDogs, Sonomic and the other major purveyors of royalty-free music libraries. There are thousands of indie artists willing to let you use their music as long as you give proper attribution. It just takes a long time finding what you want and to separate the good stuff from the trash.

What are you looking for?

Separating good stuff from trash is exactly what I've been doing. I found some decent reggae songs on revostock.com, but I must say 90% of music is bad.

Go through www.harryfox.com agency to cover a song.