Here are our options:
Chen's -

We did this last year, it is $50 if we buy tickets before the 15th. $60 after that. It is a good time, not crowded, good food, and lots of drinks. Conveniently located in Wrigleyville, but hard to get cabs afterwards.
http://www.chenschicago.com/NYE2008.htm
Dave's Party Room -
We will get food, drinks, party favors, etc. - It shouldn't be more than $50 a person. Probably closer to $30 a person. There is a TV and there will be music. And we could come up with our own entertainment (i.e. Karaokee, Games - Drinking and Non Drinking, activities, etc.)
Seven Ten Bowling -
Our New Years Eve tickets are $55 per person and consist of the following: Open CALL Bar from 8:00pm to 1:30am (last call is at 1:15am), a variety of great appetizers and hors d' oeuvres that include items such as chips and salsa, buffalo wings, hummus platter, vegetable crudite, , pizzas, etc., open gaming where appropriate, a DJ that will play all night long and dancing, champagne toast at midnight and party favors!Please call 773-472-1601 or email parties@sparetimechicago.com If you are interested in being a host at any of our locations!!
http://www.sparetimechicago.com/index.php?section=123
Other - I know Heller suggested some other ideas, feel free to let me know of any other options you want to put on the table!
http://s126613707.onlinehome.us/apt/NYE/NYE-09.php
http://www.unionparklounge.com/
Testimonials- (email me comments if you want them posted)
"we dont need to go to a bar because no one is going to talk to anyone new just the people they know so a party is better: less lines, less people, more fun and karaokeeeeeeeeee and more food and if people really want we can get chinesse and bulk alcohol those are my reasons (for daves) - "DAN RAFFE"
" I have heard from a few people that Chens is a tad small and offers no dancing/dj. I do think the food would be good, and we have to assume that drinks are a wash across the board (though some places are longer time of open bar). I think a bar like lions head offers 2 different "scenes", and a place like union park seems like it could be nice to try something different (though reviews say the service there sucks). As for Daves, i think that would be a lot of fun also, and in times of economic uncertainty, would provide a cheaper alternative to what ultimately will be a great night regardless of where we are. I think most importantly is that we are all together (awwww)." -Heller
"I vote for ESPN zone. They have lots of games including SKIIIBALL! " -Dustin