Do you have to obtain permission from the artist/songwriter if you display your version of a cover tune on your website?

Some of my buds are wanting to record some covers and upload them to a website for download (for free I'm assuming ).

technically, yes. That's why Viacom has brought a lawsuit against Google/YouTube. That's also why both MySpace and YouTube have warnings about not using copywritten material.

The Internet and our use of it has changed the rights to content and delivery of content. It will be an interesting lawsuit.

In terms of your right to perform the material, that's why ASCAP and BMI charge venues for performance fees.

However, I think if you uploaded a cover of a tune, you'd find that many other musicians/bands have done the same. No one actually expects Viacom to sue the individuals who have uploaded material to YouTube - it's not feasible. What they are hoping to do is get Google to capitulate and pay for content rights - thus setting the foundation for similar social networking sites.

I'd be careful about selling the tunes.... technically, you owe the royalty to the composer and publisher.