Dance with arm round? (5)
I believe the answer is:
limbo
'dance' is the definition.
(type of dance)
'with arm round?' is the wordplay.
'with' is a charade indicator (letters next to each other).
'arm' becomes 'limb' (I've seen this in another clue).
'round?' becomes 'o' (o is a circular letter).
'limb' put next to 'o' is 'LIMBO'.
(Other definitions for limbo that I've seen before include "Steps beneath bar" , "Waiting state; Caribbean dance" , "Medieval Christian abode for unbaptised souls" , "Under-bar dance" , "State of unceratinty" .)