Yes, Project X was based off an actual party that occurred in 2008 in Australia hosted by Cory Worthington
Corey Worthington was 16 when he threw this party, over 500 people showed up to the party even police helicopters came because of how loud the party was. Most people don't know that Project X was based off true events most people think someone just thought of this movie idea and produced it. All though not all of these events are true a large amount of them are. The house didn't burn down though.
The producers where originally using the name Project X as a place holder and then they realized it wasn't a bad name for the movie so they decided to keep the title Project X.
Project X won the MTV movie award and the categories they won was Best Comedic Performance, Best On-Screen Dirtbag, and Best Music. This shows how funny and entertaining the movie must be because of all these award categories the movie is in. This also shows that the movie must have good music.