The only thing edited is a very little bit of brightness/contrast. The colors are straight from the camera. As far as lighting goes, I RARELY (if ever) use straight-on flash, like you said, it gives fright-night face shadows. At parties like this, I typically bounce off the floor or the wall. A lot of the time, depending on what venue they're using, there's mirrors on the wall as well. It gives so much more dynamic to the image when you can see depth from shadows, instead of the subject being directly and evenly lit.