I've never bottled in 1gal jugs, but there's no reason it shouldn't work just fine, assuming your capping system's adequate and all usual cleaning/sanitizing has been done.

What kind of jugs are they and what kind of caps are you using?

Question. Are the bottles able to handle the pressure? It would be a shame to have the bottles burst on you. Increased volume means increased pressure when you go through the carbonation process.

You may want to look at the 'party pig' option. I've used the Wild Rose party pigs and a couple of those can take care of 5 guys and a Risk tournament (yeah... I'm a geek).

Another consideration - You may have more sediment with larger containers. It's no big deal in a 355ml bottle, because you can always pour into a glass and leave the last 1/4" of beer in the bottle. With a large jug, the more often you pour, the more sediment will get stirred up. If sediment doesn't bother you or your buddies, than no worries...