stilo, we had dd's first birthday a couple of weeks ago and had a similar dilemma. I really had no idea what to do for a 1 year old, it's not like they can play party games or anything is it?
We ended up inviting 12 little friends over (6 her ages, 6 slightly older just kids of good mates of ours) and we were really quite dreading it. However it was great fun, all the parents drank loads of wine and seemed to have a laugh and the little ones just played with all the presents that my dd had been given and were little angels. I made a v dodgy looking cake and covered it in colourful sweets and sparklers and all the little ones just loved it.
I was really pleased that we had had a party for her as she had fun (and so did we). Didn't go to much effort with the food as every kids party I have been too they seem to have tons left, so I did grissini sticks (the favorite it seemed), little boxes of raisins, chocolate fingers (mini ones in a tub), crisps, tiny packs of dried apricots and I made some sandwiches.
For the adults I just bought 6 big slabs of really good cheese and a load of Bath Olivers and water biscuits, plus grapes and olives and they all dug in too.
Mind you, we are party giving type people, usually have several a year, so if you aren't maybe better not to bother if it will stress you out, you should just do whatever you would enjoy most.
All I wanted to convey really is that you don't have to go to loads of trouble and effort, It took me about 2 hrs to get it all ready incl blowing up balloons. Oh and half an hour in the supermarket.