LAN party

A party where people bring their own computers, hook them up, and game all night long with eachother. Also involves mass comsumption of caffeine and junk food.

Playing multiplayer games is much more fun when your opponent is in range of verbal abuse

A gathering usually consisting of a group of friends, for fun or competition. This gathering involves either a Xbox, and/or a PC. Including games such as Counter Strike and/or Halo. LAN Parties usually go on all night due to extensive junk food consumption and caffeine, resulting in elongated sleep the night after the LAN Party.

the phrase "lan" is derived from the abbreviation Local access network, pronounced phonetically.

Having hosted a few myself, I know there usually isnt gay orgy/porn transfer involved...

"lan party" as defined by thinkgeek.com:
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A New Social Ritual Amongst The Elite

If you've never been to a LAN Party, you haven't lived properly (or you suck at gaming). If you suck at gaming, dont despair, you can still go to a LAN party, jack in, and just sniff packets and write code and still have some fun. Or you can be the sysadmin and setup the networking or you can just handle the food and beverages (get me my Bawls!)

Ah, sweet LAN parties...The stimulating scent of caffeine, the verbal jousting, the smell of pepperoni lingering in the air, the floor a tangled infestation of cat5, the neon lights of case mods poking through the scene like lasers in fog. Nothing quite like it. And when the gaming starts, everybody becomes so intense. One frag leads to the next, emotions wax and wane as gibs amass and levels change, here an unnamed player, there an elite commando with uncanny aim. Over time, the LAN party itself, a single organism, breathing, hunting....

Or something like that.
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It's like group sex for nerds

A Party, Usually involving A "Lot 'a' Nerds"

Lan Party, Group of computers connected to Play games and share porn.