Traditionally, the grooms parents pay for the rehearsal dinner. If they live out of town, it is common that the brides mother make the reservations. It is acceptable for a godparent, friend, or member of the brides family to do the hosting of this event.
The guest list should include those at the rehearsal (including the officiant and spouse). You may also invite any out of town guests, friends, and family that you wish to include. Remember that the wedding is the next day and people should not drink excessively the evening before. You may also wish to give the attendants their gifts if you have not done so already.