Oxfordshire's Cropredy Festival kicked off in spectacular style last night with a live set by one folk legend and a tribute to another, writes Tim Hughes.

The annual festival which takes place on a hillside near Banbury is frequently dubbed 'the friendly festival' and is one of the highlights of the folk music year.

This large - yet intimate - gathering has been a local tradition since 1979 and has something of a cult following, attracting a mix of roots purists, serious musicians, ageing hippies and real ale-supping festival lovers.

Thousands of music fans braved the tail end of the day's rainstorm to mark the start of another weekend of live plugged-in folk music. Headlining was the founding father of British folk rock, Lonnie Donegan. The 68-year-old 'king of skiffle' gave a storming set packed full of his trademark blues and country numbers.

Although he is best known for his novelty comedy record My Old Man's A Dustman, he shunned the temptation to play it for laughs. Instead he banged out a medley of some of the last century's best loved roots tunes, including: Woody Guthrie's Grand Coulee Dam; Hang Down Your Head Tom Dooley; traditional American ballad The Battle of New Orleans; slavery-era spiritual We Shall Not Be Moved and Leadbelly's Midnight Special and Rock Island Line.

Switching smoothly from banjo to guitar, Donegan left the crowd in no doubts that the musical magic that inspired The Beatles is still very much alive.

Folk rock fans were also given a treat courtesy of the Dylan Project. These Cropredy veterans are more than just a sound-alike tribute act. Many fans of the Dylan of old will secretly admit that - with all due respect to the great man - the talented five-piece often sound better than the real thing. This is not surprising, when you examine the line-up. The group consists of Steve Gibbons on guitar, vocals and harmonica, P J Wright on guitar and vocals, and three 'Fairports'; festival organiser Dave Pegg on bass and vocals, Simon Nicol on guitar and vocals, and drummer Gerry Conway.

The set provided the perfect soundtrack to a glorious Cropredy sunset with covers of such classic tunes as Subterranean Homesick Blues, Highway 61 and the bittersweet Like A Rolling Stone.

Roving this folk supergroup are capable of covering both ends of the Dylan spectrum, they encored with an upbeat cover version of The Travelling Wilburys' Dirty World.

Previously festival goers were treated to sets by up-and-coming folksters Tarras, and songwriter Steve Ashley who was supported by current Fairport fiddle player Chris Leslie and former member Martin Allcock.

The festival continues today with sets from Indian nine-piece Musafir, and blues band Sugarland Slim. Also on is the acclaimed folk singer Eliza Carthy, who took last summer's Cambridge folk festival by storm with a captivating duet with 60s singer-songwriter Joan Baez.

Saturday sees Fairport Convention taking to the stage with guest spots from Jethro Tull's manic front man Ian Anderson and US guitarist Amos Garrett.

If last night's performance was anything to go by, it looks like being a blistering weekend - whatever the weather.

The Cropredy festival runs until Saturday. Two-day tickets cost £46 and one-day £30, on the gate. Children under 12 go free if accompanied by an adult. Camping is £8 per vehicle for two days or free on Saturday.