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One thing I did for my daughter's first bday that everyone loved was I made a soundtrack of Tropical music (she had a tropical bbq backyard party) and gave it out with favors. I have recieved so many compliments from all ages. You could make a fun winter/snow soundtrack.

Do a winter/snow related story time with an easy craft. Homemade white playdough with silver glitter in it for a snowy look...that can be passed out with the favors also in little baggies.

Cookie decorating for kids and adults - use snowflake and snowman cookie cutters for winter.

Are there any neighborhood comunity centers near by that could be used for free or minimal cost?

choose just 2 or 3 simple ethnic items (not too messy, people will be meandering with their food) to serve, and for dessert, try hot cocoa with "snowballs" (scoops of ice cream) and fluffy white cupcakes. A simple craft for the kiddos: cotton puff snowmen (draw a template on blue paper, kids fill in the circles with cotton puffs). I recommend staying away from glitter. You could also try a do-it-yourself pin-the-carrot-on the snowman by enlarging a simple snowman image (or making one out of colored paper) and copying orange carrots for the noses to be pinned. An activity for all party-goers: making paper snowflakes. Even the grownups will enjoy! 1 hour will be more than enough for your baby. Love the previous idea of snowy-winter themed music. Story time with "the snowy day" or a similar winter picture book would be a nice addition.

I burned CDs as favors for my daughter's birthday, too, and everyone loved it.
Going along with the winter wonderland theme, you could hang dozens of paper snowflakes from the ceiling (after cutting them out) and serve a cake covered in coconut (so it looks like snow).
You could have an around-the-world party, serving foods from various cultures. Buy some inflatable globes, hang them from the ceiling, then give them to kids as party favors at the end. I'm not sure how much each one costs, though. Might be expensive.
Here are a couple links to my daughters' birthday parties this year:
rainbow theme--
http://pennycarnival.typepad.com/penny_carnival/2008/06/the-end-of-the.html

woodland theme--
http://pennycarnival.typepad.com/penny_carnival/party_on/

Just something to keep in mind: The 1st birthday is a big one--for the parents! You made it! Try not to stress too much over the details that your child will not notice.

That said, my son's first b-day was last January. We just had a small party with family. No real theme, just bright colors, a giant cupcake, and a homemade felt banner that I'd like to use every year.

I had various baby pictures in these: http://www.celebrateexpress.com/celebration/pages/products/Product_BD.aspx?sku=E74894

And hung this along with the banner I made: http://www.celebrateexpress.com/celebration/pages/products/Product_BD.aspx?pageID=1&vw=asthumb&TabID=4294967135&N=4294967116 10&SKU=E7887

I did have his up-to-date baby book for guests to look at, too.

Here are some pix from the party: http://www.flickr.com/photos/hollyp/sets/72157603780615083/

Just wanted to clear up any confusion about the white playdough idea with silver glitter in it...this is something a mom friend of mine made ahead of time for a winter activity. The kids didn't handle the glitter at all, it was completely mixed into the playdough. They loved it! And there was very little glitter residue on the table. The kids thought it was so cool to make snowmen, some older kids made little snowballs and a "fort".

We read this book along with our "snow" playdough activity
http://www.amazon.com/Snow-Globe-Family-Jane-OConnor/dp/0399242422

I ditto the foods that aren't too messy mention!

Love the idea of hanging snowflakes everywhere!

my daughter 1st birthday party is just this pass weekend, and kids (1 to 5) love the 85" x 76" x 45" Jump-o-Lene i got from amazon, and all the adult have so much fun watching them play in it so busy taking pictures!

Last year, for my son's first birthday (in December) I hosted a Winter ONEderland party. Snowflake and winter themed.
Photos are on my blog! Hope it helps!
http://www.everydaycelebrating.com/2008/10/winter-onederland---first-birthday.html

This isn't specifically winter, but for my son's first birthday, with no family in town, we invited three other children from his day care and had his Kindermusik teacher do a short 'program' with us. We all had fun and I gave egg shakers and rainbow rainmakers as take aways.

Thanks everyone for some really nice suggestions!

We also want to invite some of our close friends who are single or couples with no kids. How can I ensure that they have a fun (adult) time as well?

Visakha

Alcohol.

Just kidding. Sort of.

I personally don't think that winter parties necessarily need a winter theme. That being said, my son's birthday was a winter ONEderland theme and yes it was decorated with Christmas trees and a picture taking station and a candy buffet.

My daughter's birthday was a Milk & Cookies theme and it was immensely fun for both young and old. I served up miniature milk containers and I have to say that the adults pretty much drank the majority of the chocolate milk with the amount of cookies I had available. They also had great fun with the balloon guy.

But I think what sealed the deal for most parents was my "baby safe zone" I gated in a corner for crawlers and beginning walkers with toys, bouncers, etc. so they could toddle around or simply play without worry of being stepped on of putting things they shouldn't have in their mouths. Parents could actually PUT DOWN their kids (and yes - pick up the wine and beer provided) so I'd recommend that.

here's a link to her party - http://colorblindproductions.blogspot.com/2008/10/small-event-planning-and-decoration.html

I'm dying to host another children's party with a 'games' theme and have monopoly, dominos, scrabble and the like on tables for adults while having hungry hippos and candy land for the kids.

Just put thought into what your guests will enjoy and your guests will all enjoy themselves.

Visakha,
This year for my son's 2nd b-day I wanted to include my single and child-free friends, too. In an effort not to entertain them as well as the kids, we're doing a music theme. A friend who's in a band is playing for guests--not kids' music, just some kid-friendly rock n roll. The kiddos will dance and the grownups can drink beer and enjoy the music. There will be pizza. Everyone loves pizza! And to keep the kids excited, I ordered some egg shakers and various cheap-o musical things for them to play. And, of course, inflatable guitars!

Since there are only going to be 3 kids at my son's birthday party, and babies are pretty easy to entertain, I'm more concerned about the adults that are going to be there!

I hope some more people have adult ideas too, so far all I have is some board games and mix cds!