I use 2 cameras. One in teh back setup for med/wide shots, and one up front for closeups.
I shoot the final dress rehearsal, in order to get good audio (I record to Microtrack recorder and send to camera via wireless) and multiple shots from both cameras.
I find that the final dress rehearsal gives me a lot of leeway to move around for shots.
Then, I shoot 1 camera for the live performance, getting kids getting ready, crowd reaction, and entire live performance and edit together in post.

I've shot about 3 plays in the past 5 months, and you definately have to be careful about copyright laws. I make DVDs for the parents/kids involved, and charge $15 a DVD, make about $600 a gig usually. You will need to check with directors/principles/ whoever is in charge, that they have permission from whoever they got the rights to do the play/musical to shoot video. If anyone asks, its best to say it is for archiving purposes, 99% of the companies out there whwo supply scripts, scores, ect. have no problem with you making archive copies, for the school and most dont have problems supplying DVDs to those involved either. As long as you aren't selling DVDs to the general public, there shouldnt be any complaints from parents anyway. Actually most parents eat this stuff up, buying like 3-4 copys to send to grandparents and other family members.

P.S. Since someone asked about the setup...I've done as simple as two DVX100's and an Optura 50 for a wide shot, as crazy as 2 DVX100's, an XL1S, a JVC 5000u, and the optura 50 (again just for a wideshot)
Actually shooting another play this weekend with my brand new FX1 and the two DVX100s

I con my girlfriend to sit in the lobby and take orders and the school makes nothing.

Go through the chain of command, but your ultimate goal is to talk with the department head or person that is responsible for the performances (music instructor or director)

You are making this too confusing to yourself. Simply talk to the owner of the dance school. Problem is that they most likely have some other videographer doing this for them already. There's always that chance that they don't though. Especially in a smaller town.

Not really confused, just trying to gather as much upfront information as possible. I thought that if I might have to bid a job with someone else, the more information I had, the better my chances. Really, to everyone that responded to this thread...thanks. Some of the schools in my area really promote their performances, and there is very high support from the parents and students. I've seen Choir Pop Festivals with as much as 400 to 500 people attending, each night. From what some have been saying here, it sounds like it might be something to pursue.