UK based Shenai Weddings has a neat idea for a very Indian themed set up. Why not put guests on the floor? They do it India, why not here? This idea includes floor pillows that your guests will thank you for. Very colorful and a neat way to incorporate the lavish Moghul reclining style of relaxing. I don't think this will work for my crowd, but maybe for those 'young people' or even kids tables. If you need to set up tables on the dance floor, this is an easy way set up to tear down to make room for the music. Alternatively, this would also be a good use of pillows for a mendhi or engagement party. Again, assuming your guests can get up just as easily as they sat down on these colorful cushions :)
To set this up, get lots of floor pillows, small tables and TONS of fabric. You could also use old sari's. You know, the one's that your mom insists someone will get use out of someday....well my mom says this all the time. Maybe you can borrow her's.