The key to any good party is the right music. You want to include songs that most people know (even if they don't know that they know them) and can sing along to, and/or songs that are very danceable. Because this definition is fairly broad, a party playlist can include songs from almost any genre you can think up.
It's good to begin the night with a few songs that people know and will sing along to. This way, they get into the music and enjoy the party while they're still sober and too nervous to get up and dance.
1. "You Spin Me Right Round" - Dead or Alive
2. "Wrong Way" - Sublime
3. "Tainted Love" - Soft Cell
Once a few songs and a few drinks have gone by, you can start to play some familiar songs with a beat to dance to. People will start to get up because "OMG, this is my song!" and the dance floor will begin to fill up.
4. "Single Ladies" - Beyonce
5. "Bombs Over Baghdad" - Outkast
6. "Temperature" - Sean Paul
Towards the middle of the night, when everybody has had some drinks and is already up dancing, you can throw in a techno hit or two, and watch, amused, as an entire room jumps up and down and twitches unexplainably for a few minutes.
7. "One More Time" - Daft Punk
End with somewhat current songs which were designed to get people to shake their ... behinds. People will wear themselves out, and leave your party sweaty, tired and happy.
8. "Run the Show" - Kat Deluna
9. "Smack That" - Akon
10. "Low" - Flo Rida