One of the new features in Apple's iTunes 8.1, released just today, is iTunes DJ. Replacing the old Party Shuffle atop the Playlists heap, it also integrates with the Apple Remote app for the iPhone for shiny party goodness.
How does it work? At first look, anyone at your party with the Apple Remote app can request songs from your iTunes library, and everyone with the app can vote for which song gets played when. Genius seems to work with it as well.
Jeremy was kind enough to grab us some screenshots, after the break! If you've given it a go already, let us know if you've found anything else in there!