At the MEN Arena in Manchester. A chap next to me got excited when they came on and stood up to clap. A staff member in a pastel-coloured polo shirt shined a torch in his face and told him to sit.

I have never been to a large festival, mainly because outdoor gigs have generally been a bit disappointing; my take is the smaller the gig the better.

I guess what you (and I) are missing out on then is seeing those acts who generally play large gigs only.

about going to a gig at somewhere like the O2. I would much rather go to Shepherd's Bush every time.

For me, festivals are dependent on the Great British Weather. If the sun shines they're great, if it rains they can be thoroughly miserable.

U2 at Milton Keynes. Faith Brothers, Billy Bragg, REM, Ramones (as well as Spear of Destiny) and U2. Pretty good line up I reckon. Rained a lot, they took your food and drink of you when you arrived (and tried to sell you crap food and drink at ridiculous prices that would still look expensive now) and the coach I travelled on got stuck in the mud in the (very) makeshift parking area. I think I discovered I am allergic to them that day.

going to Days on the Green http://en.wikipedia.org/wiki/Day_on_the_Green and my Uni years in clubs and small venues in and around LA (Roxy, Whiskey, Al's Bar, Club 88, Music Machine, Madame Wong's). Smaller venues any day unless you absolutely have to see the act. Did my first festival in more than 30 years (Neil Young at the Hop Farm) and thoroughly enjoyed it.

I'd only want to see a band at the Shepherd's Bush Empire in the future - such a shame they really that don't use that place nearly enough. I love it!

As it was my local I've been to many a Reading Festival since the 80's and enjoyed most of them but only one Glastonbury which I didn't really like. One gig at Wembley Stadium (Rolling Stones), one gig at Earl's Court (R.E.M.) and about five at Wembley Arena (The Who, Velvet Underground, Depeche Mode, Sisters of Mercy and R.E.M).

Otherwise the biggest venues have been Hammersmith Odeon (it'll always be the Odeon to me!) and Brixton Academy and even those I feel are a bit too big.

I personally like smaller venues and always have, but maybe that's because most of the bands I love never make it to the big venues!

In England I've always liked The Borderline in London and the Zodiac in Oxford and enjoyed the atmosphere. The thought of seeing a band at the O2 leaves me cold...

– there is a reason why Depeche Mode,The Cure and Radiohead have remained so big on the international circuit for so long. I think you either need a really energetic and charismatic front man (Dave Gahan of Depeche Mode) or music that is big on atmospherics (The Cure / Radiohead). While not a massive U2 fan, I would guess that they score big on both fronts.

I think it also depends on where you sit – I remember sitting at the back of Earls Court and feeling that I would be better off at home watching the band on a very small telly.

Some bands (The Strokes, The Stone Roses) were clearly better suited to smaller venues, while others (Razorlight) were more suited to early retirement.

Festivals are mainly good for seeing bands that you might not otherwise have gone to see. If you go elsewhere but the main stage you'll probably be able to sit or lie in the sun watching a live band with a beer in your hand and they have to be pretty crap for that not to be a good thing. The problem is that the lack of roof that lets the sun in also lets in water.
As others have said, the main thing you miss at big venue gigs is the main band. If you can get a ticket for Bruce Springsteen at Bush Hall can you get me one as well?! Unfortunately some bands rise to enormodome popularity without having the act to go with it. If I can't get a position near enough the stage to be able to see what's going on without looking at the screens then I won't bother going.

Small gigs vs Enormodome - small gigs every time, no doubt.

But don't narrow down the festival experience to being one of 100,000 punters at the Pyramid.

Festivals come into their own miles away from the main stages (and the television cameras) in the tents and the far flung fields. As JohnW says, ideally with the sun shining, flat on your back with a beer.

From recent memory:

The Hold Steady and The Gaslight Anthem on the John Peel Stage. Small gig vibe in a festival context.

Roger McGuinn in the Acoustic Tent. Could have been in any intimate club anywhere.

Emiliana Torrini on the Park Stage. Sunshine, me on my back on the big slope with not a soul close by to bother me.

Any number of groups on the Lakeside Stage at Latitude. Tables and bars close by, Marina and the Diamonds, The New York Fund, The Beep Seals and Johnny Foreigner on stage. Not at the same time, obviously.

Closer to home - Half Man Half Biscuit (obligatory reference), Carbon/Silicon, Eric Bibb and Nick Lowe on the Word stage at Cornbury.

Yes, you need the weather and to be able to do the camping thing - but everyone should do one (sensible) festival at least once.

Needs someone who can fill a barn or the atmosphere of a field and has the technology to do it. And where you are. And how much you like being crushed, or bottles of piss flying overhead.

AC-DC at Monsters of Rock can do it. AC-DC at the NEC can do it. AC-DC at the Sydney Entertainment Center can't because the sound was crap.
Thin Lizzy at Reading, while I was near the front surrounded by thousands of farting bikers could just about do it.

Madonna at the SCG can't, doesn't matter how many pole dancers she has up there.

Frottage ?