MUMBAI, India (AP) - Children broke into Bollywood dance numbers and crowds cheered in the narrow lanes of a teeming Mumbai slum on Monday as they gathered to root for the hometown heroes who nabbed the Oscars' highest honor.

Two of the child actors in "Slumdog Millionaire'' were plucked from a desperately poor neighborhood on the outskirts of Mumbai to star in the rags-to-riches tale that stormed the Academy Awards.

The actors, Azharuddin Mohammed Ismail, 10, and Rubina Ali, 9, were flown to Los Angeles for the ceremony, leaving their friends back home to gawk, beam, shout and dance in celebration.

"My eyes couldn't believe that I was seeing Rubina in America,'' said Saba Qureshi, Rubina's best friend. Saba and her sisters woke before dawn to catch every minute of the Oscars, squealing with joy every time Rubina came on screen. They had one of the handful of TV sets in the neighborhood.

"Slumdog'' won eight Oscars, including best picture, best director, and two awards for best music - each time inspiring raucous renditions of the dance routines for which India's movie industry is known.

"It seems like happiness is falling from the sky,'' said Sohail Qureshi, Saba's father and Rubina's neighbor.

The Hollywood glitz, the limousines and the red carpets of the Oscars could not be farther away from the Bandra slum, nestled between a major road and filthy train tracks.

Azhar lives in a lean-to made of plastic tarpaulins and moldy blankets. Rubina shares a tin-roofed, cotton-candy colored shack with her parents and her six brothers and sisters. Stray dogs nap on mountains of trash.

Hordes of journalists descended on the neighborhood Monday. TV tripods straddled the thin stream of sewage outside Rubina's home while rows of satellite trucks idled outside a normally sleepy tea stall.

"Normally, no one talks to us and no one comes here, but now everyone is here,'' Mohammed Ismail, Azhar's father, said before a bouquet of flashing bulbs.

About 65 million Indians - roughly a quarter of the urban population - live in slums, according to government surveys. Health care is often nonexistent, child labor is rampant and inescapable poverty forms the backdrop of everyday life.

Prime Minister Manmohan Singh congratulated the "Slumdog'' team Monday, saying, "The winners have done India proud.''

While everyone in the area was excied about their local stars, some objected to the film - and its title - that made them famous.

"I'm poor, but no one can call me a dog,'' said Fakrunissa Sheikh, 40, who lives in a lean-to next to Azhar's. "I work very hard.''

Rubina's friends wouldn't let talk like that cloud the big day.

"She looked like an angel,'' Saba said after the TV showed Rubina smiling in her white dress. "When she comes back, we will have the biggest party."

'Slumdog' rules Oscars with 8 prizes, best picture

By DAVID GERMAIN

AP Movie Writer

LOS ANGELES - "Slumdog Millionaire'' took the best-picture Academy Award and seven other Oscars on Sunday, including director for Danny Boyle, whose ghetto-to-glory story paralleled the film's unlikely rise to Hollywood's summit.

The other top winners: Kate Winslet, best actress for the Holocaust-themed drama "The Reader''; Sean Penn, best actor for the title role of "Milk''; Heath Ledger, supporting actor for "The Dark Knight''; and Penelope Cruz, supporting actress for "Vicky Cristina Barcelona.''

A story of hope amid squalor in Mumbai, India, "Slumdog Millionaire'' came in with 10 nominations, its eight wins including adapted screenplay, cinematography, editing and both music Oscars (score and song).

"Just to say to Mumbai, all of you who helped us make the film and all of those of you who didn't, thank you very much. You dwarf even this guy,'' Boyle said, holding up his directing Oscar.

The filmmakers accepted the best-picture trophy surrounded by both the adult professional actors who appeared among the cast of relative unknowns and some of the children Boyle cast from the slums of Mumbai.

The film follows the travails and triumphs of Jamal, an orphan who artfully dodges a criminal gang that mutilates children to make them more pitiable beggars. Jamal witnesses his mother's violent death, endures police torture and struggles with betrayal by his brother, while single-mindedly hoping to reunite with the lost love of his childhood.

Fate rewards Jamal, whose story unfolds through flashbacks as he recalls how he came to know the answers that made him a champion on India's version of "Who Wants to Be a Millionaire.''

As he took the stage to accept his prize for playing slain gay-rights pioneer Harvey Milk, Penn gleefully told the crowd: "You commie, homo-loving sons of guns.''

He followed with condemnation of anti-gay protesters who demonstrated near the Oscar site and comments about California's recent vote to ban gay marriage.

"For those who saw the signs of hatred as our cars drove in tonight, I think it's a good time for those who voted for the ban against gay marriage to sit and reflect on their great shame and their shame in their grandchildren's eyes if they continue that support,'' Penn said. "We've got to have equal rights for everyone.''

For his demented reinvention of Batman villain the Joker, Ledger became only the second actor ever to win posthumously, his triumph coming exactly 13 months after his death from an accidental overdose of prescription drugs.

His Oscar for the Warner Bros. blockbuster was accepted by Ledger's parents and sister on behalf of the actor's 3-year-old daughter, Matilda.

"I have to say this is ever so humbling, just being amongst such wonderful people in such a wonderful industry,'' said his father, Kim Ledger. "We'd like to thank the academy for recognizing our son's amazing work, Warner Bros., and Christopher Nolan in particular for allowing Heath the creative license to develop and explore this crazy Joker character.''

Since his death, the 28-year-old Ledger has gained a mythic aura akin to James Dean, another rising star who died well before his time.

The Joker was his final completed role, a casting choice that initially drew scorn from fans who thought Ledger would not be up to the task given Jack Nicholson's gleefully campy rendition of the character in 1989's "Batman.''

In the months before Ledger's death, buzz on his wickedly chaotic performance swelled as marketing for the movie centered on the Joker and the perverted clown makeup he hid behind.

Ledger's death fanned a frenzy of anticipation for "The Dark Knight,'' which had a record $158.4 million opening weekend last summer.

The previous posthumous Oscar recipient was Peter Finch, who won best actor for 1976's "Network'' two months after his death.

Cruz triumphed as a woman in a steamy three-way affair with her ex-husband and an American woman in Woody Allen's romance.

"Has anybody ever fainted here? Because I might be the first one,'' Cruz said, who went on with warm thanks to Allen. "Thank you, Woody, for trusting me with this beautiful character. Thank you for having written all these years some of the greatest characters for women.''

"OK, that fainting thing, Penelope,'' Winslet joked later as she accepted her best-actress prize for "The Reader,'' in which she plays a former concentration camp guard in an affair with a teen. "I'd be lying if I haven't made a version of this speech before. I think I was probably 8 years old and staring into the bathroom mirror, and this would be a shampoo bottle. But it's not a shampoo bottle now.''

It was Winslet's first win after five previous losses.

"Slumdog'' writer Simon Beaufoy, who adapted the script from Vikas Swarup's novel "Q&A,'' said there are places he never could imagine being.

"For me, it's the moon, the South Pole, the Miss World podium, and here,'' Beaufoy said.

The epic love story "The Curious Case of Benjamin Button,'' which led with 13 nominations, had three wins, for visual effects, art direction and makeup.

"The Dark Knight'' had a second win, for sound editing.

"Milk'' writer Dustin Lance Black offered an impassioned tribute to Milk.

"If Harvey had not been taken from us 30 years ago, I think he would want me to say to all the gay and lesbian kids out there tonight who have been told they are less than by the churches, by the government, by their families, that you are beautiful, wonderful creatures of value, and that no matter what anyone tells you, God does love you and that very soon, I promise you, you will have equal rights, federally, across this great nation of ours,'' Black said.

"Man on Wire,'' James Marsh's examination of tight-rope walker Philippe Petit's dazzling stroll between the towers of the World Trade Center in 1974, was chosen as best documentary.

The acting categories were presented by five past winners of the same awards, among them last year's actress winners, Marion Cotillard and Tilda Swinton, plus Halle Berry, Nicole Kidman, Kevin Kline, Sophia Loren, Anthony Hopkins, Shirley MacLaine and Robert De Niro.

It was a much different style for the Oscars as each past recipient offered personal tributes to one of the nominees, without clips of the nominated performances. Awards usually are done in chit-chat style between a couple of celebrity presenters.

After last year's Oscars delivered their worst TV ratings ever, producers this time aimed to liven up the show with some surprises and new ways of presenting awards. Rather than hiring a comedian such as past hosts Jon Stewart or Chris Rock, the producers went with actor and song-and-dance man Hugh Jackman, who has been host of Broadway's Tony Awards.

Instead of the usual standup routine, Jackman did an engaging musical number to open the show, saluting nominated films with a clever tribute.

Jackman later did a medley staged by his "Australia'' director Baz Luhrmann with such performers as Beyonce Knowles and "High School Musical'' stars Vanessa Hudgens and Zac Efron.

"Slumdog Millionaire'' went into the evening after a run of prizes from earlier film honors.

The film nearly got lost in the shuffle as Warner Bros. folded its art-house banner, Warner Independent, which had been slated to distribute "Slumdog Millionaire.'' It was rescued from the direct-to-video scrap heap when Fox Searchlight stepped in to release the film.

"Slumdog'' composer A.R. Rahman, a dual Oscar winner for the score and song, said the movie was about "optimism and the power of hope.''

"All my life, I've had a choice of hate and love,'' Rahman said. "I chose love, and I'm here.

On the Net:

Academy Awards:

http://www.oscars.org

Winners at the 81st annual Oscars

Winners at the 81st annual Academy Awards:

- Motion Picture: "Slumdog Millionaire.''

- Actor: Sean Penn, "Milk.''

- Actress: Kate Winslet, "The Reader.''

- Supporting Actor: Heath Ledger, "The Dark Knight.''

- Supporting Actress: Penelope Cruz, "Vicky Cristina Barcelona.''

- Director: Danny Boyle, "Slumdog Millionaire.''

- Foreign Film: "Departures,'' Japan.

- Adapted Screenplay: Simon Beaufoy, "Slumdog Millionaire.''

- Original Screenplay: Dustin Lance Black, "Milk.''

- Animated Feature Film: "WALL-E.''

- Art Direction: "The Curious Case of Benjamin Button.''

- Cinematography: "Slumdog Millionaire.''

- Sound Mixing: "Slumdog Millionaire.''

- Sound Editing: "The Dark Knight.''

- Original Score: "Slumdog Millionaire,'' A.R. Rahman.

- Original Song: "Jai Ho'' from "Slumdog Millionaire,'' A.R. Rahman and Gulzar.

- Costume: "The Duchess.''

- Documentary Feature: "Man on Wire.''

- Documentary (short subject): "Smile Pinki.''

- Film Editing: "Slumdog Millionaire.''

- Makeup: "The Curious Case of Benjamin Button.''

- Animated Short Film: "La Maison en Petits Cubes.''

- Live Action Short Film: "Spielzeugland (Toyland).''

- Visual Effects: "The Curious Case of Benjamin Button.''

Academy Award winners previously announced this season:

- Jean Hersholt Humanitarian Award (Oscar statuette): Jerry Lewis

- Gordon E. Sawyer Award (Oscar statuette): Pixar Animation co-founder Ed Catmull

Preliminary ratings show Oscar numbers up

NEW YORK (AP) - A preliminary measurement of the nation's biggest markets shows ratings for this year's Academy Awards went up 6 percent over last year, yet the telecast is still likely to be among the three least-watched Oscars ever.

Nielsen Media Research says its estimate of the Oscar audience's size will come later Monday. Last year's audience of 32 million was the smallest ever measured for an Oscar telecast.

Last year and in 2003, when "Chicago'' won best picture before 33 million viewers, are the low-water marks for the annual show.

New York, Chicago and Los Angeles were the markets with the highest Oscar ratings Sunday.

Oscar after-parties flash global glitter

By SOLVEJ SCHOU

Associated Press Writer

WEST HOLLYWOOD, Calif. - The glitzy, global spirit of Hollywood raged into the wee hours after the Oscars, with parties around town feting everyone from British best actress winner Kate Winslet down to the youngest "Slumdog Millionaire'' star, drinking caffeine to keep up his strength.

Ayush Mahesh Khedekar, only 8, slurped on a can of Coca-Cola at Fox Searchlight's packed after-party Sunday night at ONE Sunset in West Hollywood honoring "The Wrestler'' and "Slumdog Millionaire.'' Filmed in the slums of Mumbai, "Slumdog'' snagged eight Oscars, including best picture and director.

Ayush, who lives in India and plays the youngest version of the movie's protagonist Jamal, sat on a sofa at the club, nursing his soda after midnight.

"Very excited,'' said Ayush, when asked about the wins. "It's unbelievable. I never thought I would get an Oscar. Daniel (director Danny Boyle) told us, 'If you work hard, the Oscar will come to you.' And it came.''

As for being tired?

"No, that's why I'm drinking this,'' he added.

Madhur Mittal, who plays the character Salim in the film, held a drink as throngs of women passed by offering their congratulations. Guests, including Serena Williams, nibbled on red velvet cupcakes and sipped on cocktails including "The Slumdog,'' a mix of vodka, raspberries and lime garnished with a lollipop - far from the modest fare depicted in the film.

"It feels unreal. This is the best day of my life, man,'' said Mittal. "I come from India and I never in my wildest dreams thought I would be at the Oscars, much less be part of the movie that sweeps the Oscars.''

Despite economic woes, myriad parties had all the glam and celebrity fraternizing of past soirees, though guest lists were substantially slashed and simple comfort food reigned.

Jennifer Love Hewitt hosted AIDS Project Los Angeles' annual bash at The Abbey, and Chevy Chase, Laura Dern and other famous faces flocked to the Night of 100 Stars gala at the Beverly Hills Hotel. Lindsay Lohan joined her DJ girlfriend Samantha Ronson, who spun at the Mercedes-Benz after-party at the Montage Beverly Hills.

Best actor winner Sean Penn and nominees Taraji P. Henson, Marisa Tomei, Amy Adams and Anne Hathaway were just a few of the stars who made the Governors Ball at the Kodak Theatre their first post-Oscars stop.

Guests nibbled on lobster and shrimp and three-level dessert boxes topped with chocolate Oscars. Penn, his co-star Emile Hirsch and "Twilight'' hottie Robert Pattinson were among those who enjoyed the outdoor smoking lounge, a recessed area topped with a dozen overturned parasols.

The Asian-themed affair featured bonsai trees inlaid in the tables and images of bamboo leaves projected on the walls. There was also a chocolate-and-champagne fountain to entertain guests on the back patio.

Blocks away from Fox Searchlight, Vanity Fair's revived Oscar party was all about A-list camaraderie.

The annual celebrity-stuffed bash, canceled last year before the end of the Hollywood writers' strike, roared back into style, with Oscar winners literally rubbing shoulders at the hilltop Sunset Tower Hotel, a new venue for the party after years at the restaurant Morton's. A tented area outside had a stunning view of Los Angeles.

At 11:30 p.m., Winslet swept in. Clutching her Oscar trophy for "The Reader'' in one hand and a glass of champagne in the other, she grinned and hugged admirers left and right.

"Great Britannia,'' said Anthony Hopkins, bearhugging the actress.

"Oh my God!'' yelled Winslet back to the Oscar-winning actor, later adding, "I was actually very calm … I got so many text messages.''

The party's exclusive, pared down guest list meant that only the cream of Hollywood showed up, from Jennifer Aniston snuggling next to her boyfriend John Mayer, to Halle Berry drinking champagne on a couch and shaking hands with Russell Simmons.

Best supporting actress winner Penelope Cruz happily munched on a brownie, later hugging Tilda Swinton. Amy Adams laughed in a tight cluster with Uma Thurman, Jake Gyllenhaal and Reese Witherspoon.

Other guests included Robert De Niro, Tina Fey and Josh Brolin. Attendees feasted on more working-class offerings like bagel, egg and bacon sandwiches and In-N-Out burgers.

Nearby, Elton John's annual viewing dinner and after-party at the Pacific Design Center's tented courtyard was another glamorous affair, complete with a five-course menu, including risotto, black sea bass, pear compote and puffed chocolate tartlet.

Dressed in black, wearing strands of Chopard diamonds, John greeted tables of guests, including Simon Cowell and Sharon Stone. Chace Crawford was seated across the room from his amiable ex, Carrie Underwood, who glittered in a silvery dress.

"People are going through tremendous hardship,'' John told his guests before the night's big auction for his Elton John AIDS Foundation. "In this time of hardship, we are going to raise as much money as we possibly can.''

That he did, with $4 million, according to the party's publicist. A stay in Normandy, France, was auctioned off for $80,000.

John later joined musical guest Raphael Saadiq onstage, garnering cheers for a version of John's "Benny and the Jets.''

Across town, in Hollywood, Prince ended the night on his own rock 'n' roll musical note, taking the stage at his last-minute Oscar after-party at the Avalon club at 1:45 a.m.

Wearing black sunglasses, and waltzing onto the stage twirling a gleaming silver cane, Prince noodled on his guitar to whoops and hollers from the audience, which included nominee Henson.

"This is what we do at house parties. I'm the DJ tonight,'' he said.

Associated Press Business Writer Ryan Nakashima and Entertainment Writer Sandy Cohen contributed to this report.