After nearly thirty years of running folk clubs and festivals and singarounds let me say first, it is the job of the organiser or MC to sort out disruptive elements in the audience not the singer. second don't waste your time meeting this ignorant dickhead you say he sings better than you this is probably his root problem he thinks that any one who is not his equal is his inferior and therefore beneath his notice. If he continues to do this to you tip his beer over his head. (I saw this done once before and after the chap bought another beer he came and complained to me about it, so i tipped that one over him and then threw him out). your problems behaviour is indicative of a small mind, a small talent and an over sized ego.
having said all that you cannot indeed MUST NOT stop all conversation (keep it muted)this was i believe a major factor in killing off hundreds of small clubs throughout the UK. I must admit it is difficult finding a balance though.

Graham (Guernsey)