Ed, thank you very much for the reply. That's just what I wanted to hear.. from someone in the know. I'll check it out.
I highly recommend the Karaoke. I don't think I (we) have laughed quite so hard in my life. I can't sing to save my life and neither can any of my friends. Funny how one can have a few drinks and believe they can though!
Very easy to set-up. I picked up an el cheapo Electrohome DVD/Karaoke player from Zellers last year for $129.00. It has component/s-video/composite video and audio outs. Both a digital out and a 'regular' stereo out. Then you need to buy some karaoke DVD discs. They display images/video and the words on your TV/projector so everyone can sing along. Typically, you get a choice on the disc as to how loud you want to have the volume from the DVD to play. You'll need a couple of mics, I would recommend wireless though because it is much easier to move around and depending on how many people you have in the room if things get out of hand you might get tangled up. Believe me, it can happen! Just don't get cheap ones. I bought cheap ones, although they looked pretty cool and well made the noise through them was terrible. Ended up having to plug the cords in. Too bad.
You then simply plug the mics into into the front jacks of the player, adjust the mic volume ( a knob on the front of the player, oh, it even has 'echo' to!) and away you go. Depending on what you have plugged the audio outputs into the whole affair plays through your stereo.
It was well worth the expense. The player itself is actually very good as a DVD player. I have an HTPC and I got the player basically for my kids to mess about with. I have ended up using it myself! Great fun. highly recommended.
PS, my wife thought I was nuts bringing the thing home, she now likes it to!
Christmas tip: Last year I bought it for myself, wrapped it up and put it under the tree. I do this every year! great way to get what you want. Just make sure you mark 'From Santa' on the box!