Poetry with awful lines entertaining everyone (8)
I believe the answer is:
balladry
'poetry' is the definition.
(as in ballads)
'awful lines entertaining everyone' is the wordplay.
'awful' becomes 'bad' (similar in meaning).
'lines' becomes 'ry' (abbreviation for railway).
'entertaining' indicates putting letters inside.
'everyone' becomes 'all' (all people).
'bad'+'ry'='badry'
'badry' going around 'all' is 'BALLADRY'.
'with' acts as a link.
(Other definitions for balladry that I've seen before include "(Making) sentimental songs" , "set of songs" , "Folk-singing etc c" .)