Actress Salma Hayek (L) and Academy of Motion Picture Arts and Sciences President Sid Ganis announce the nominees in the Best Picture category during the Academy Awards nominations announcement in Beverly Hills, California, the U.S.A. Jan. 23, 2007. The biggest winner was also the biggest loser at the Oscar nominations, as uplifting musical "Dreamgirls" walked away with eight nods but was snubbed for the top prizes. (Xinhua Photo) Photo Gallery >>>

    LOS ANGELES, Jan. 23 (Xinhua) -- The musical "Dreamgirls" led the list of Academy Awards nominations announced here Tuesday, with eight nods, but was shut out of the most important best picture category in favor of "Babel," "The Departed," "Letters from Iwo Jima," "Little Miss Sunshine" and "The Queen."

    Meanwhile, nominated for best actor are Leonardo DiCaprio for "Blood Diamond," Ryan Gosling for "Half Nelson," Peter O'Toole for "Venus," Will Smith for "The Pursuit of Happiness" and Forest Whitaker for "The Last King of Scotland."

    Whitaker, who won the Golden Globe last week for his portrayal of Ugandan dictator Idi Amin, is considered the front runner in the race for best actor, but O'Toole, who portrays an aging actor who becomes infatuated with a young girl, could be a sentimental favorite. He has been nominated seven times but has never won in Oscar competition.

    Vying for best actress are Penelope Cruz for "Volver," Judi Dench for "Notes on a Scandal," Helen Mirren for "The Queen," Meryl Streep for "The Devil Wears Prada" and Kate Winslet for "Little Children."

    Mirren, who already collected a Golden Globe for her portrayal of Queen Elizabeth II in the days following the death of Princess Diana, is an early favorite to win the Oscar.

    The failure of "Dreamgirls" to make the list of best picture nominees was a sharp downturn for the much-hyped film, which won the Golden Globe last week for best film in the musical/comedy category.

    Eddie Murphy and Jennifer Hudson each earned supporting acting nominations for "Dreamgirls," which also was nominated for costume design, art direction, sound mixing and three times for best original song.

    "Babel," the Golden Globe-winning drama following the global repercussions of a single rifle shot, earned seven nominations. In addition to best picture, the film is up for best director for Alejandro Gonzalez Inarritu, best supporting actress for both Adriana Barraza and Rinko Kikuchi, film editing, original score and original screenplay.

    "Little Miss Sunshine" - a comedy about a family's trip from Albuquerque, New Mexico to California so their daughter can compete in a beauty pageant - was a surprise winner at the Producers Guild Awards on Saturday.

    The low-budget, sweet-and-sour comedy that made a splash at last year's Sundance Film Festival earned four nominations, including the best picture, best supporting actress, best supporting actor and best original screenplay.

    Director Martin Scorsese earned his sixth Oscar nomination for "The Departed," but Scorsese has never won the prize. Also up for best director are Clint Eastwood for "Letters from Iwo Jima," Alejandro Gonzalez Inarritu for "Babel," Stephen Frears for "The Queen'' and Paul Greengrass for "United 93."

    Oscar nominations were announced in Beverly Hills by Sid Ganis, president of the Academy of Motion Picture Arts and Sciences, and former Oscar nominee Salma Hayek.

    The 79th annual Oscar ceremony is to be held Feb. 25 at the Kodak Theater in Hollywood. 

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