Vaudeville Kazoo Theatre Wednesdays at 8 p.m., at the Orson Welles

THERE'S an element of tyranny involved in the "Theater Two" performance of the Orson Welles' new live show. It's the kind of tyranny you'd expect in modern "audience involvement" theater productions, but it's strangely out of place here in this mediocre, nouveau-vaudeville entertainment.

Steven and Joel Polinsky-brothers, actors of some experience, nice guys, and the performers of "Theater Two"-open with a comedy sketch about overcoming the inhibitions of playing kazoo, and then quickly proceed to do a "sound story" designed for audience participation: one brother tells about getting up in the morning and going to work while the other brother holds up a series of cue cards- "Radio," "Hot Water," "Happy" -and the audience is supposed to provide sound effects with specially provided kazoos. Steven and Joel (nice guys that they are) are very anxious to have the audience enjoy and take part in this boring, foolish game, and (this is where the tyranny comes in) they manage to make non-participating members of the audience feel anti-social, insensitive, mean, and inhibited by serious negative oral fixations. Audience participation was never before such an embarrassing ordeal. Meanwhile, those who are participating produce bursts of sound effects that are nearly all alive, due to the limitations of the common kazoo and to the fact that most of the participating audience is pretty well stoned.

For the rest of it, "Theater Two"-which is the present production in the Welles' series of weekly live shows in the Kazoo Theater-is a sentimentalist's stew of short experimental films (some of which are the work of students at the Welles Film School); occasionally funny comedy bits by the bothers Polinsky; recitations (one gets something like "People are the true flowers, and it has been a most precious pressure to have temporarily strolled in your garden"; a song; and a play. The play is a two-man, one-act affair, written by Stephen and Joel's uncle, about two dogs, with amplified social overtones along the lines of Disney's Lady and the Tramp.

The only two interesting things about the Kazoo Theater are a short, academy award-winning film shown during intermission, and the strange feeling of disorientation that comes from watching such a seriously presented collection of unlikely, unfunny, unmoving "entertainment." It's a little like the disorientation that comes out of the theater of the absurd; but instead of emphasizing the absurdity of life, the "Theater Two" emphasizes only its own absurdity.