DJ man is saying that once he buys a record, he can do whatever he wants with that record. That's mostly right. He can sell it, smash it, give it away, etc. He owns that physical LP and has all the rights appertaining to the ownership of physical property.

Though I would have framed it differently, James on the other hand is essentially saying that ownership of the physical record does not give you ownership rights in the underlying copyright of the music that is embodied in the record. With regards to that copyright, you have a somewhat limited implied right to use the copyright for private use and other fair use rights. So just because you have own a record that doesn't give you the right to take the music and put it in a movie you are making. Most people get that. What most people aren't aware of is that you are technically also suppose to pay for public performances of the music in commercial establishments. A DJ wouldn't typically have the license but venues and radio stations usually pay for blanket performance licenses from ASCAP and BMI. Of course public performance is a hard right to track and enforce but during these hard times for the music industry, ASCAP and BMI have become more aggressive in sending people into the field to find venues in breach of their public performance right. The venues they are cracking down are becoming smaller and smaller to include your neighborhood bar with a jukebox.

**********
the test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function.