i played 1/2 fr for a long time and the opposition isn´t too tough. there are tons of really bad players before and after the flop. 6 players to the flop at a 10 handed table is nothing unusual (raised pot of course ^^). on average they are a bit better than the players at 0,5/1 (hoho) but you should be able to beat them.
but i have to admit that i didn´t play at party poker.
if there is no real reason to play fr you should stick to sh...
btw: i think 300bb is enough to play but if you can´t take it to go back to 0,5/1 immediately when you have a downswing you should play 0,5/1 until you have 500bb or something like that. but this is something you should decide according to your own experiences.
gl