From Novelty Act I'd choose Falling Off A Cloud and Idol Eyes...I love the way that song changes style and pace - harking back to Phil's Split Enz days.
You'd have to have Love Hate Relationship, Whisper and OK Alright Uh Huh Oh Yeah by Schnell Fenster, but I think I prefer Happy Feet to Heroes Let You Down.
I think I'd steer away from Split Enz songs with Tim only vocals, except Time For A Change which would go after the Mental Notes Stranger Than Fiction. Spellbound would be from Beginning Of The Enz and Under The Wheel must be on it too.
Counting The Beat is a must too, but I'm not sure about what other Swingers tracks should go on. I guess It Ain't What You Dance... would have to make the cut too.
I'd probably also chuck on Precious Time (prefer it to Long Hard Road) for a bit of variety.