We did .05/.10 when my group was just starting out, and it was also the last time. At those stakes people threw chips around a little too wildly, and just didn't care much about strategy. People were chasing silly straights, praying for runner-runner full houses, sh*t like that. Really... what's 15 bux among friends?
When we bumped it to .25/.50 with $80 max buyins, everyone tightened up a bit and played a little more "strategically," so to say. Granted, everything is relative in poker, based on bankroll, how much you're willing to lose, etc. But the .05/.10 stakes just didn't mean much to anyone when we started. For some reason .25/.50 and the occasional $60 pots got everyone to think about the game aspect more seriously. If that makes any sense.
Also, as a lot of folks mentioned, you could also just do a tournament and start with low blinds to make the game long. We run a 10k $25 buy-in tourney and start with 25/50 blinds. The game doesn't really tighten up until the 150-300 level, which gives everyone three to four solid levels of poker fun before having to wise-up with their strategy/play.
That's my 2-cents.