Just went through this a couple of weeks ago! I decided to have the party at home, just to keep it simple. Originally wanted to rent an outdoor area with a pool but, like you know, it's mostly for the adults. We kept it very simple and geared towards the guests and their kids. The one year olds really don't know what's going on. In terms of decor, we had a 1st birthday table cloth with napkins, plates & cups to match, streamers, some balloons (including one big fancy 1st Birthday balloon), and a cut-out Happy 1st Birthday sign to hang from the wall. Confetti on the table cloth added a little pizazz. For the guests' kids, we had noisemakers, hats, a little bag of misc. favors, and bubbles. (always a hit) I also prepared mini corn dogs, tacqitos, chips and cookies. For our friends and fellow adult guests, we had a some nice cheese and crackers, warm finger food, and the big hit - fruit punch with extra punch. I know throughout our children's lives, theme parties become very popular. (Check out this site, http://www.birthdayexpress.com/ [1], just to put it into perspective) I realized this is probably the one and only time to not have to incorporate something like that. We did do the singing of Happy Birthday and the blowing out of candle. She loved that - hands and face covered in frosting, makes for some cute photos. All in all, it was a really fun party [1] http://www.birthdayexpress.com/bexpress/

I am also in the process of planning my son's first birthday party. His birthday is November 17th. Since we have about 60 people coming, we put ourselves on a budget. We are keeping the decorations simple and we are ordering food from Costco. We have found Costco to be the most reasonable with pricing. For the little kids we are making cupcakes and having the kids put on the frosting and decorations themselves. I have about 10 kids coming that are 6 and under. Music and bubbles are always fun. We are going to have some crayons on the table and paper so they can color. We are looking for easy and clean fun for the little kids that they can do themselves. We don't want the parents to have to work. I have kids coming ranging from 1 to 6 years old. Any ideas, let me know. Party City also has great little inexpensive things to entertain the children. Enjoy your first birthday parties.   

I have 2 kids 11 months apart and with the birth of my second child I had to cancel the first birthday party for my daughter.  This year we will have the party together for 1 and 2 years old.  I spoke with a local party guy who does magic and balloon animals.  He told me that until kids are 3, he won't do a party and that after many many years in the business he found only 2 things that "can" work well.  The moon bounce and a petting zoo - this of course is all dependent on your kid.  Anything else seems to be too much for them or scares them.  Interesting is what I thought.