When our kids were small, we had a policy of inviting as many guests as our child's age.  so our two year old invited two friends and that's it.  this keeps things really sane and gives you a chance to do activities that are age appropriate.  for our oldest's second birthday, we got refrigerator boxes that we turned into houses that the kids decorated with stickers and markers.  another activity--we provided styrofoam sheets and let the kids drive golf tees into the styrofoam with wooden hammers.  We also let our two year old help ice her own birthday cake.  It was a very quiet party--interested family members stopped by over the course of the day to bring little presents and say hello.  the party was truly geared to what a two year old could enjoy, so we didn't have the tears and stress that often accompany the birthday child's party experience.  this is an unconventional approach to parties but maybe you can incorporate some part that will help make your party great!  good luck!

Family some day care or play group friends if he has any and baloons, cake, singing the birthday song and no longer than 2 hours from go to woe.  The excitement is going to wear him out super fast and any longer than 2 hours and you are going to have grumpy over tired and over stimulated Birthday Boy instead of a happy birthday boy.

keep it simple.  make a big fuss, with minimal effort so to speak.  Invite aunts and grandparents etc, take photo's and video (if applicable) play ballance ballos on your head, on your foot on your fingers etc.  keep activities down to a 10-15 minute time slot or he (and others his age) will lose interest.  Keep presents away and safe as they may be very tempting and in a hightened state of excitement they may break before the giver goes home.

Play spin around as fast as you can until I say stop, and see who can stand still.  lots of fun all around whilst people wobble and fall all over each other in their dizziness.

Have summersalt races (2 at a time might be best).  And Either have NO prizes or ALL prizes.  @ year olds have no sense of fair play so real competitive games are not a good idea.

You can play dance and freeze (dance crazily and when the music stops you have to freeze....no need to get anyone out, just have fun with it) 

Play Somon says without the simon says part (I needed to make you understand what I was getting at).  I call it "What the Zoo Keeper See's"

The Zoo Keeper Looks Out and What does he see?????

Turn your back to kids and choose your animal eg.  ELEPHANT....LION.......MONKEY......SEAL........SNAKE.......PENGUIN.......etc.

They have to as quickly as you turn around be acting as the animal you chose.  If you want you can pick the best animal but pick a best for every round so everyone is best at something.  I suggest you just express delight in each and every performance though.

Make a propper time for eating and drinking prefferably with them sitting down somewhere even if it's on the floor as you say it may be indoors, this will prevent too much mess.  If you get one of those colourful plastic birthday table cloths get 2 one for the table and one for the floor...make it the birthday kids picnic mat and they all have to sit on it whilst they have anythng to eat or drink.  Get disposable plastic cups and write names on each as well as names on the plates, so that there wont be any fights over who left their cake only to come back and the icing was eaten off.

Hope these suggestions are helpful and I hope you have a fun time.

Hi, I think is depend on your child character. But if you have an issue with small house and you still want to do it in your house, I would suggest do a theme party according to your child favorite thing at the moment. Invite just some close friends or even just family. 2 years old isn't fuss about things (I thought) as long as you have candles and cake (with your child fav thing on the cake) and of course presents.