Well, I always just have the smokers go out onto the back yard, and I make sure there's an area that's covered with one of those tent-things where it's got the top of a tent, but not the sides... and then I make sure there's places for them to sit, and ashtrays, and all that stuff. The problem is... sometimes half the party just moves there permanently. The non-smokers can stay inside if they want, but most of the time, since it's outside, most non-smokers don't care if there's smokers around as long as there is even a small outside breeze... and if there isn't... I use a fan.
Under extreme conditions, when everyone must be inside, I would just set up fans and open the windows at one end of the room, and put down a ribbon or something on the floor, and tell the smokers to stand on that half of the room when smoking... and then I'd let the fans keep the air moving the smoke away from the non-smokers to the outside.
If you're having a party at your house or apartment, you likely have a backyard, or a porch, or some outdoor place that is relatively nice, but out in the air and separate from the other people. So you can have smokers go there, either for the entire party or when they need a smoke break. That's always been how it's worked at the parties I've attended.
If you or your guests are severely irritated by smoke, though, you might as well go all the way and make the party non-smoking. It might upset a few smokers, but in the end, you're the host and it's your house. You're the one in charge of what goes on.
Sometimes it is not feasable to accomodate smokers. I DO NOT allow smoking in my home EVER. I will allow them to smoke on my screened in porch and provide an ashtray and chairs to sit.
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