I think Ilko tried to use an absolute construction equivalent to the time clause below:
- The band was playing while/as we were dancing around.
Oh, that's a good guess, Gustavo. If that was Ilko's intention, this thread illustrates how important it is to use a comma (or a slight pause) before that construction. The sentence is incorrect and incomprehensible without it:
- The band was playing, with us dancing around.