Upload & Sell: On
I agree with the sentiments here: You're at a party, shooting for fun/free, then I'd ask if anyone prefers to not have their child in the shots (or just wait and see if anyone complains), and I'd give out the shots without watermarks or any of that nonsense. Out of courtesy, I'd avoid photography any kid that parents ask to not be photographed... but, does this ever happen? No.
Also agree with the sentiment that: If you're charging, you better get up to date on contracts, licensing rights, and pick up some personal liability insurance... for when someone trips over a camera, doesn't like XYZ, etc. And then hope you don't need to use it.
Charge by hour/day/half day. Make it easy. Deliver print resolution images on DVD, give the right to print/share electronically for personal purposes (facebook, etc). Perhaps give one folder for printable resolutions and one for web-based display. Basic processing-- exposure, contrast, sat-- and cropping. No retouching. Offer prints only at very profitable prices, same with specific retouching of images. Ideally you never print/retouch except when it is highly worth your while.
Charge according to what your time is worth, where you plan to position your business (if this is what it is), and what you can get. And realize that people charge between $10 and $500+ an hour-- with happy clients and various levels of personal happiness/profit (barely being able to feed oneself on rice and beans<--->owning luxury cars and properties).