1.	I think there's a simple solution to the problem. Now, it may be naive, I'm just a user, albeit a passionate one. I love music. I almost always have music on when I'm writing and browsing. As the editor of a community site, I'd love to have a song of the day, in fact I do sometimes, but we let the lyrics stand in for the tune. The lyrics of almost every song is on the net somewhere, Alta Vista can find them, and I link to them, and I don't worry about royalties for the record companies, any more than the users of Visicalc and 1-2-3 worried about the profits of Personal Software and Lotus Development.
2.	My solution for the record companies -- distribute low-resolution scans of your libraries thru the Internet. On the page where I download the song, include the lyrics, and a One-Click button to purchase the high-resolution version of the song. It arrives on CD a few days later. Each song has an official web page. The pirate sites will wither and go away. The theory is that if I love the music, I'll buy the music. Just give me a reason to buy it. If the hi-rez versions sounds more beautiful, I'll buy it. I like to spend money on the things I like, especially if they're cool. I hate spending money on sticks in the mud, but spending money for courageous leaders, that's easy.
3.	I can hear the response. Why should we do that? The answer is what we all know, an informal piracy network already exists. I can already get your song if I look hard enough. But I'm honest and I don't look, yet.