Straight from the horse's mouth, and ON VIDEO!
Got this from the Cardinal Arinze Podcast: Podcasting with the Vatican:
In the strict liturgy, that means the Mass, the Sacraments, Europe and America should not talk of liturgical dance AT ALL.
Below is the YouTube version of the video. You'll hear these words right around the four-minute mark. The good Cardinal does, however, recognize that the "dance", though not in European or American cultures, does exist in African and Asian cultures.
At around the eight-minute mark he answers a question on secular music as well. Excellent, excellent, excellent!