In 1976, while guitarist Phil Manzanera's band Roxy Music was on hiatus, 801 got together as a temporary project and began rehearsing at Island Studios, Hammersmith, about three weeks before their first concert.
The music consisted of selections from albums by Phil Manzanera, Brian Eno and Quiet Sun, plus covers of The Beatles' "Tomorrow Never Knows" and The Kinks' "You Really Got Me".
Released at the height of the punk rock revolution in the UK, the LP was not a major commercial success, but it sold well throughout the world, particularly in Australia, where it was heavily promoted by the ABC's new 24-hour rock station Double Jay (2JJ), and because it gained rave reviews from critics both for the superb performances by the musicians and for its groundbreaking sound quality.
[citation needed] In 2006, the official Phil Manzanera Web site Manzanera.com reported that 801 Live was soon to be reissued as a double CD with "minor tweaks" to the original recordings and restoration of the "proper ending" to the song "Third Uncle".
[citation needed] In April 2011, Burning Shed announced the availability of the double CD under the title 801 Live Collectors Edition.