Another vote for Smash Brothers. Great party game. I've only been able to connect to an online game once, and the lag was terrible (we're talking 1 frame per 20 seconds). Not sure if it was me or him, but I'm hoping it was a fluke and I'm able to play online eventually. The friend code system is kind of annoying, though (and random play doesn't seem to work for me, can never find anyone).
Other notable favorites of mine were:
Super Mario Galaxy
Super Paper Mario
Fire Emblem (even though many said it was really hard, it just appealed to me for some reason)
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