In the description of the episode "Mind over Murder" on the back cover of Disc One, Season One of the Family Guy DVD it states: "Peter is placed under house arrest and turns his basement into a bar where Meg becomes an acclaimed lounge singer."
In the episode (and in the picture right beside the description) it is very clear that Lois, Peter's wife, is the lounge singer and not his daughter Meg. I don't know how they missed that one, especially with a picture of Lois singing right beside it.