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The Dancitron was a popular dance club in New York City, frequented by people with hilariously ugly clothing. Its music selection ranged all the way from "Cold Slither" to big-band music... and that's it. Just those two pieces of music.
It was also a front for some kind of a Decepticon plot, courtesy of Starscream and Soundwave. They used Soundwave's abilities to hypnotize patrons into building something large and mysterious. (How the housewives and businessmen that got hyp-mo-tised got to Dancitron in the first place is unknown.) As luck would have it, Raoul discovered that the hypnotism could be broken by getting its victims slightly wet once, forever immunizing the victim.
Dancitron was later destroyed as a result of a battle between Soundwave and Blaster, when the latter used the trumpet-speakers from the comically huge speaker system to boost his volume up to eleven. Hundred. Eleven hundred.
It wasn't a very good plan.