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For the family:

I see Boom Blox and Rayman have been brought up already.
The masses seem to love Mario & Sonic (not my cup of tea, though). Ditto for Carnival Games.
Have you considered light-gun games? Ghost Squad is cheap, and good fun for 4-player local play.
If everyone has the patience to sit through it, Dokapon Kingdom is one of the best local multi-player games I've played in a long while (but read what it's about first, to see if it's for you).
Quantum of Solace is supposed to be alright (multi-player wise, I mean. Not single-player)

There's more, but I'm trying to limit it to 4-player stuff. If two-player's okay, things open up.

As for what to get yourself...that's a whole 'nother list.