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Setting the mood of the party can be handled in a simple manner.
1) Depending on the type of party you are having select some background music.
For example:
* Dinner party - play jazz or light music.
* Children's Party -- play different children's music.
* Fun Fiesta -- Up beat music.
2) Scents make a big difference.
For example:
* Light scented candles
* Burn incense
* Display fresh flowers