Fair use ends when the multimedia creator loses control of his product's use, such as when it is accessed by others over the Internet.
Are there limitations to the amount of pictures or length of music or video that can be used in a multimedia project?--Yes, only certain amounts of copyrighted material may be used.
Up to 10% of a copyrighted musical composition, but no more than 30 seconds
A photograph or illustration may be used in its entirety
Up to 10% of a copyrighted work or 3 minutes, whichever is less
Do you need to request permission from the original creator in order to use copyrighted material in a multimedia project for a school-related assignment?--Not necessarily.
Students may use portions of lawfully acquired copyrighted works in their academic multimedia projects, with proper credit and citations.
Quotes in italics are from: http://www.ncpublicschools.org/copyright1.html

You re-stated a very important point about downloading music for use on a video. I think that it is very important for students to recognize the limits that we need to follow when creating a multimedia project. In addition, your last point is well taken – we do need to make sure that appropriate citations are used that give credit where credit is due.
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