I really like smaller LAN parties for just that reason, you can trust people you know to not cheat.
This last Saturday, nine of my buddies and I got together for a frag match of good ole' Unreal Tournament. It was my first time playing, but my experience with FPSes helped me stay up at the top. That was good, non-cheating fun. I dunno why people hack games to allow cheats, I think those people are losers with no life