*In the US, you can secure a mechanical copyright for the entire CD compilation for just $40US.
That does not protect you from royalty fees for covers, it protects your own mechanical compilation rights from being copied against your will.
http://www.copyright.gov/ That's the US copyright website, things have never been easier -- and there is a great FAQ situation there now. Check it out.
As for the payment of royalties for covers on anything on your CD, check out the Harry Fox agency for licensing. You can set up a situation where you only pay small fees according to your CD sales. Of course, you must keep a record of all sales in order to do this. And you should keep records anyway.
**It is best to only use your own home burner (PC, Mac or whatnot) to burn your Master CD and then send that out to a replication facility for duplication. This guarantees that your CD sales will play on the vast majority of players out there. It can also look much more professional, you can even find duplication houses, that, for an extra fee will place your own barcode on the thing. Artwork, jewel case, Redbook spec burning, and now that this has literally become a mom and pop business, you can find duplicators on the web very easily. Typically a one-time setup fee, look for one that will let you make smaller orders after the setup, that works best for me.
My wife sets up the table and sells the CDs while I work. I have had someone come up and want to buy one of every CD on the table. With up to ten different CDs on the table, including the religious and the Christmas CDs, that can be a substantial amount added to the normal gigging fee.
Do everything above board and legal from the betginning and sleep the sleep of the righteous at night. It is not that hard to comply with the laws and regulations.
As for someone playing the CD instead of the live performance, I have yet to hear of such happening. If anything, I've been called to NEW gigs because someone lent someone else one of my self-produced CDs...
--Mac