Help! Engagement Party Stress!

How should the engagement party invites read? I`ve heard it should never be titled an "engagement party" because it could be considered tacky and implies you`re asking for gifts. I`ve heard you should word the invite something like this (his parents are throwing it by the way, so the invitations will probably sound like they are coming from them):
"Please join us in a party in honor of Jack and Jane, we will be celebrating at 7 p.m., 1010 Lala Lane."
Obviously I need help with the wording to dress it up, but basically it`s saying to join us for a non-labeled party. Then, at the party, his parents make an announcement saying we`re gathered together because he and I are engaged.

But I`ve also read that it should be called an e-party right off the bat, otherwise it`s just too confusing and sounds weird, so people might not come. Can you help me come up with a great way to word the invites?

Also, should we mail a party invitation to out of town family, or just send them an engagement announcement? I don`t know if they`d come, I might feel a little silly if my uncle flies down from PA just to have some lasagna in my FIL`s backyard (it will be a semi-dressy event), but it`s an important occasion...so, what do you think??

One last question - his parents said for us to pick out the e-party invitations, and they`d pay us back for them. Our invites were $43 for 50, and we probably will need more. Is this too expensive?