Dance round and round (5)
I believe the answer is:
disco
'dance' is the definition.
(disco can mean a dance event)
'round and round' is the wordplay.
'round' becomes 'disc' (disc is a kind of round).
'and' says to put letters next to each other.
'round' becomes 'o' (o is a circular letter).
'disc'+'o'='DISCO'
(Other definitions for disco that I've seen before include "One might get down to this" , "Modern dance hall or event, in brief" , "party for dancers" , "Dance club with recorded music" , "equipment for playing recordings" .)