Sadly, using a short loop to stutter in Arrangement View means you won't be able to simultaneously record into Arrangement View. You'll end up with a 1-Bar long recording that keeps getting written over itself. You can add an extra Audio Track, route your audio to that, and then record into clips in Session View. You can then drag these clips into Arrangement View afterward.
Personally, I prefer to stutter using Live's Beat Repeat device. I know many people complain that since it's only an audio effect, your clips keep advancing, and your tracks will essentially "run away" from you. It's not very useful when you're trying to make short songs last longer
Scrubbing the waveform in its Sample Display and assigning Global Quantize to a MIDI controller is another great option, but its not always an elegant solution. It sometimes takes focus away from more important views, and you run a high risk of accidentally clicking on something wrong during a live set. Besides, alot of people don't like using their mouse when playing live. (They say it looks like you're checking your email. ... Yes, sometimes I AM checking my email during a DJ set. But I'm using my cell phone to do it.)
I've never tried the Artillery VST, but there seems to be a free trial available. I doubt it's going to be much more effective than Beat Repeat. You're still going to run into the problem of your tracks running out; VST's do NOT affect Live's timeline or clip positions.
You can also break your single clip into multiple clips, and you should be able to do some nifty tricks with Follow Actions and Legato Mode to help stutter and extend your songs. I understand this takes a fair amount of preparation ahead of time, but it can be a very powerful solution.
When I play
Other People's Music (straight DJ-ing) I usually rock out with Native Instruments Traktor. It costs about the same as the Artillery Plugin. It's got some great beat jumping and looping options, plus the Beatmasher effect. Perfect for the stutter addict!
The absolute King of Stutter, even more than Fatboy Slim, would be BT. BT's software company Sonik Architects supposedly was coming out with Stutter Edit (it was used and mentioned in the liner notes of This Binary Universe) but so far nothing has materialized despite a scheduled release date of 2007, and it's just vaporware at this point.
Perhaps Max For Live will solve all our problems in the future. ...
[Edit; Hey, this is my 100th post. Do I win a prize?]