No I've never been...
Um... what is it? Is it a literal cuddle party or is it metaphorical or code?
With such a interesting name my curiosity has skyrocketed
Yes, it was fun. Actually facilitated by the guy who started them.
Have you been to a gathering? Rather similair although most are more gender-balanced. Rules are kind of the same. The one I attended, most people ended up cuddling pretty much with one person for the duration (after the group exercises).
I would recommend attending one.
Having attended the cuddle party, knowing people who attend many cuddle parties, having attended dungeon parties and tmf gatherings, I have found (based purely on my own exposure and experience) cuddle folks are more cuddly and touchy-feely than kink and fetish oriented. Many are new age type and truly want to connect with another human being on many levels. Hope that makes sense.
But hey go for it, and just see what the vibe is.

I read the information offered in their websites quite some time ago, and asked myself if it seemed like my cup of tea, then decided, "neah." Here's a dark-comedy video on the subject, by the way: http://www.youtube.com/watch?v=ULWMZgI8baQ .

I read the information offered in their websites quite some time ago, and asked myself if it seemed like my cup of tea, then decided, "neah."