That's what I'm doing right now. I have a live Dj using Virtual DJ, it's working really well!
I'll have some pics of my setup soon, right now I have a little workshop in my garrage. It's not fancy, but it works well.
I don't think I need a variance for what I'm doing at the moment, nothig professional, and nothing in public. Right now my audence consists of 3 cats and my stoner roommate. They are all easy to please!
I won't be doing anything more than private parties in the near future, so I think I'm not breaking any laws, but safety is a huge concern for me. I'm doing a lot of reading right now, I'd hate to hurt anyone.
Speaking of safety, I found someone willing to make me cool, custom safety googles, but I need to provide lenses. Is there a market for used goggles or face shilds that he can canniblize for my custom eyewear?