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Budapest in Winter/New Year?

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I am currently planning a trip for Christmas and New Year 09/10 and need some advice!
We are flying in to Berlin for a few days, train to Dresden for a day or two, then on to Prague for Christmas Day. From there, we are on to Vienna and ultimately to Budapest, flying home on January 2nd. A 16 day trip with a few day-trips from our main cities.
So my question is... has anyone stayed in Budapest for the New Year? I am wondering if things wil be open, and how New Year is celebrated in Budapest.
Any advice would be MOST appreciated!

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