I don't know what's going on elsewhere in the city but downtowners will not suffer from a lack of options on New Year's Eve. Here is the list from the CCC website:
New Year's Eve Party The Peabody Hotel. 149 Union
New Year's Eve Party Rumba Room. 303 S Main
First Kiss NYE 2009 Quetzal. 668 Union
New Year's Eve Guitar Drop Hard Rock Café. 315 Beale
New Year's Eve Encore Restaurant. 150 Peabody Pl.
New Year's Eve Party Flying Saucer Draught Emporium. 130 Peabody Pl.
NYE Bluff City Ball. Orpheum Theatre. 203 S Main. 6pm. North Mississippi Allstars, Lucero, and Amy LaVere.
Countdown on Beale. Beale Street.
New Year's Eve Bash Hollywood Disco. 115 Vance.