Hurt Locker takes Oscars glory

HOLLYWOOD'S glass ceiling was shattered and the $US2.5 billion box office blockbuster Avatar felled by Kathryn Bigelow and her small budget Iraq war film The Hurt Locker at the 82nd Annual Academy Awards.

Bigelow became the first woman in Oscar history to win the directing award, a feat that sparked a standing ovation from the A-List crowd inside Hollywood's Kodak Theater.

Only three other women have been nominated for best director Academy Awards, including New Zealander Jane Campion for the The Piano in 1994. Bigelow hopes her breakthrough will open the floodgates for other female directors.

"I hope I am the first of many," said Bigelow, whose past films include the 2002 thriller, K-19: The Widowmaker, starring Harrison Ford and the 1991 Keanu Reeves action movie Point Break.

Moments after Bigelow, 58, accepted her directing award, she was back on stage when The Hurt Locker was named best picture, trumping Avatar, the sci-fi extravaganza directed by her ex-husband James Cameron.

"There is no other way to describe it," Bigelow said.

"It is the moment of a lifetime."

The Oscar ceremony was billed as a David versus Goliath battle between The Hurt Locker, which cost just $US15 million ($A16.54 million) to make, against Avatar, with a budget of $US400 million ($A441.16 million).

Just like the story in the Old Testament it was the underdog that came out on top with six awards, including original screenplay, sound editing, sound mixing and film editing.

The Hurt Locker, a tense drama following an American military bomb disposal unit, has made just $US19 million ($A20.96 million) at the box office, compared to Avatar's $US2.5 billion ($A2.76 billion), the highest grossing film of all time.

Avatar finished with three Oscars - visual effects, cinematography and art direction.

Australia had four nominees: short filmmakers Luke Doolan and Drew Bailey; costume designer Janet Patterson for Bright Star; and best picture nominated producer for District 9 Carolynne Cunningham.

They all came up empty-handed.

The four acting Oscars largely followed the script with Sandra Bullock, playing a mother who takes in a homeless boy in The Blind Side, relegating Meryl Streep (Julie & Julia) to Oscar bridesmaid again. Streep a two-time winner, has failed to win the last 12 times she has been nominated.

Bullock, who 24 hours earlier won the Razzie Award for the worst performance by an actress in last year's comedy shocker All About Steve, joked she was blindsided by the Oscar win and the gold statuette will "sit side-by-side" with the Razzie on her mantelpiece.

"I didn't aspire to this," Bullock, looking down at her Oscar, told reporters.

"I was in awe of it, but it wasn't something I thought I would win one day. This came out of left field."

Heavy favourites Jeff Bridges (Crazy Heart) won best actor, Christoph Waltz (Inglourious Basterds) took the supporting actor and Mo'Nique (Precious) claimed the supporting actress prize.

"Thank you academy members!" Bridges shouted on stage, before acknowledging his actor father Lloyd and actress mother Dorothy.

Pixar's beloved Up won the best animated feature Oscar.

In a break with tradition, the show began with a formal introduction of the 10 nominees in the best actor and actress categories before American actor Neil Patrick Harris led a song and dance routine.
The introduction of show hosts Alec Baldwin and Steve Martin followed, who arrived on stage from the ceiling of the Kodak Theater in a mechanical platform surrounded by angels.

Baldwin and Martin then warmed up the star-studded audience with an opening double act, cracking jokes and introducing other nominated stars sitting in the audience including the record nominee Meryl Streep.

While Australia had little to cheer about, New Zealand's Weta Digital team won the visual effects Oscar for Avatar.

Doolan, from Darwin, and Bailey, from Wollongong, were the first to feel the academy's cold shoulder when their live action short film Miracle Fish missed out.

The winners were Denmark's Joachim Back and Tivi Magnusson for The New Tenants.

It was a case of fourth time unlucky for Sydney-based costume designer Janet Patterson.

Patterson picked up the fourth Oscar nomination of her career for the costumes she created for the Jane Campion-directed English period drama Bright Star, which starred Abbie Cornish, but just like her three previous nominations over the years, the Sydneysider was snubbed.

The costume design Oscar was won by England's Sandy Powell for the period drama, Young Victoria.

Cunningham was up for the best picture Oscar for the sci-fi movie District 9, but was beaten by The Hurt Locker.