Hello R.,
my daughter is now 7 years old, and I have always had her birthday parties at my house. I find that holding the party at my hosue cuts down on the stress and the cleanup/preperation time. The other benefit is that people are free to stay as long as they want. I suggest you ask people if htey could bring food (family members, close friends; things like potatoe salad, macaroni salad, cut veggies, etc) to help cut down the cost. I usually do some sort of home craft, like making masks, or puppets, or whatever, and then allow the kids to run around and have fun. Pinatas are always good, kids always like those. Also, I was jsut at a party at my aunt's house for my second cousin, and my aunt had tied strings to a clothesline, adn tied apples at the other end of hte string, had everyone kneel on the ground, with their hands behind their backs, and she swung the clothesline, making the strings swing as well. The object was to catch the apple in your mouth (like bobbing for apples, without water), and the winner got some sort of prize. Also, if the child is into sports, why not do a sports game? Football, baseball, soccer, whatever? Split hte kids and adults into teams, have them pick numbers inorder to have nobody get picked "last", and see who wins? the winning team can get some sort of small prize or whatever. You can also make cupcakes, and have the kids decorate them themselves, or ice cream sundae's. Scavenger hunts are always fun. It is october, so some sort of halloween cosutme party would be cool too, or maybe get some small pumpkins, and have hte kids decorate them. Sharades is always a fun game, or perhaps do your own version of who's line is it anyway, where you can write scenerios and put them in a bag or hat, and have people pick from the bag, whatever htey get they have to act out, and they can choose other people to help with their scene, the rest of the group has to try and guess what it is they are acting out.
If I think of anything else I will repost. I hope this helps.