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Here’s some links:

What is the New Party?

“The New Party believes that the social, economic, and political progress of the United States requires a democratic revolution in America — the return of power to the people. Our basic purpose — reflected both in our own governance and in our aspirations for the nation — is to make that revolution happen.” http://web.archive.org/web/20010204044200/www.newparty.org/about_the_np.html

They describe themselves as “Social” Democrats:
“We’ve already said that we see the NP as an explicitly progressive and democratic organization. This would give it an ideology not unlike that of European social democratic parties, or the New Democratic Party of Canada.” http://www.nathannewman.org/EDIN/.election/np/bnm.html

Democratic Socialism is a form of socialism brought about via evolutionary rather than revolutionary methods, but it is Socialism nonetheless. see: http://en.wikipedia.org/wiki/Democratic_socialism

The New Party chapter in Chicago was dominated by ACORN early on: “But the nature of Chicago ACORN is secondary to the inevitable dynamics of the situation. As the single 800 pound gorilla in the Chicago New Party, it doesn’t leave a lot of room for newcomers to participate except on ACORN’s terms. This will make it difficult for the New Party to have a life apart from ACORN.” http://www.chicagodsa.org/ngarchive/ng38.html#anchor1869108

Later the Democratic Socialists of America took a larger roll: “...the NP is a true “Rainbow Coalition” consisting of both young and aged African-Americans, Hispanics and Caucasians. Although ACORN and SEIU Local 880 were the harbingers of the NP there was a strong presence of CoC and DSA (15% DSA).” http://www.chicagodsa.org/ngarchive/ng42.html#anchor792932

So, back to Obama. He sought membership and endorsement from the New Party in 1996 and had to sign a contract: (from the Democratic Socialists of America newsletter)
“About 50 activists attended the Chicago New Party membership meeting in July. The purpose of the meeting was to update members on local activities and to hear appeals for NP support from four potential political candidates. The NP is being very active in organization building and politics. There are 300 members in Chicago. In order to build an organizational and financial base the NP is sponsoring house parties. Locally it has been successful both fiscally and in building a grassroots base. Nationwide it has resulted in 1000 people committed to monthly contributions. The NP’s political strategy is to support progressive candidates in elections only if they have a concrete chance to “win”. This has resulted in a winning ratio of 77 of 110 elections. Candidates must be approved via a NP political committee. Once approved, candidates must sign a contract with the NP. The contract mandates that they must have a visible and active relationship with the NP.
The political entourage included Alderman Michael Chandler, William Delgado, chief of staff for State Rep Miguel del Valle, and spokespersons for State Sen. Alice Palmer, Sonya Sanchez, chief of staff for State Sen. Jesse Garcia, who is running for State Rep in Garcia’s District; and Barack Obama, chief of staff for State Sen. Alice Palmer. Obama is running for Palmer’s vacant seat.” http://www.chicagodsa.org/ngarchive/ng42.html#anchor792932

That he received the endorsement and became a New Party member is confirmed by the New Party itself:
“Illinois: Three NP-members won Democratic primaries last Spring and face off against Republican opponents on election day: Danny Davis (U.S. House), Barack Obama (State Senate) and Patricia Martin (Cook County Judiciary).”
http://web.archive.org/web/20010306031216/www.newparty.org/up9610.html

Of further interest is that Obama received endorsments from the Chicago DSA on multiple occasions and spoke at their forum on “economic insecurity” as a panel member.
“Over three hundred people attended the first of two Town Meetings on Economic Insecurity on February 25 in Ida Noyes Hall at the University of Chicago. Entitled “Employment and Survival in Urban America”, the meeting was sponsored by the UofC DSA Youth Section, Chicago DSA and University Democrats. The panelists were Toni Preckwinkle, Alderman of Chicago’s 4th Ward; Barack Obama, candidate for the 13th Illinois Senate District; Professor William Julius Wilson, Center for the Study of Urban Inequality at the University of Chicago; Professor Michael Dawson, University of Chicago; and Professor Joseph Schwartz, Temple University and a member of DSA’s National Political Committee.”
http://www.chicagodsa.org/ngarchive/ng45.html

Later the DSA praised Obama’s remarks as “well within the mainstream of European social democracy.” http://www.chicagodsa.org/ngarchive/ng69.html#anchor540108