Children in the slums of Mumbia, India, are finding reason to celebrate Monday following the domination of the rags-to-riches tale "Slumdog Millionaire" at the 81st annual Academy Awards Sunday night in Los Angeles.

Cheers went up each time "Slumdog Millionaire" was called out as a winner, and children broke out into Bollywood dance moves in celebration. It won eight Oscars, including best picture.

The film won a leading eight Oscars, including Best Picture and Best Director for Danny Boyle.

Sean Penn and Kate Winslet took top acting honors, while Penelope Cruz and the late Heath Ledger captured supporting trophies.

Penn won his second Best Actor Oscar in five tries -- this time for playing slain '70s gay political pioneer Harvey Milk in "Milk."

"You commie, homo-loving sons of guns," Penn joked at the podium. "I did not expect this and I want it very clear that I do know how hard I make it to appreciate me often."

Getting serious, Penn targeted anti-gay protestors outside of the Kodak Theatre before the ceremonies.

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

Winslet captured her first Oscar in six tries -- a Best Actress statuette for the post-Holocaust drama "The Reader." She paid tribute to her competitors but in particular Meryl Streep, who was up for Best Actress for "Doubt."

"I want to acknowledge my fellow nominees -- these goddesses -- I think we all can't believe we were in the category with Meryl Streep at all. I'm sorry, Meryl, but you have to suck it up."

Heath Ledger won a posthumous Oscar for Best Supporting Actor for "The Dark Knight." His Oscar was accepted on his behalf by his father, Kim Ledger; mother, Sally, and sister, Kate, who flew in from the actor's native Australia for the ceremony.

"This award tonight would have humbly validated Heath's quiet determination to be truly accepted by you all here -- his peers -- within an industry he so loved," said Kim Ledger. Heath Ledger's win comes exactly 13 months to the day after his untimely death from an accidental overdose at age 28.

"We have been truly overwhelmed by the honor and respect bestowed upon him with this award," said Bell. "Tonight we are choosing to celebrate and be happy for what he achieved."

"We proudly accept this award on behalf of your beautiful Matilda," added Kate Ledger in reference to the eventual recipient of her father's Oscar.

Cruz took the Oscar for Best Supporting Actress for "Vicky Cristina Barcelona" to open the ceremony. She became emotional when describing that winning the award wasn't "a very realistic dream" growing up.

"On the night of the Academy Awards I always stayed up to watch the show," Cruz said. "I always felt like the ceremony was a moment of unity for the world, because art in any form always has been and will always be our universal language. We should do everything we can to protect its survival."

Simon Beaufoy won for Best Adapted Screenplay for "Slumdog Millionaire," and Dustin Lance Black took the Best Original Screenplay Oscar for "Milk."

Black, who acknowledged his homosexuality during his speech, became emotional when expressing what Milk might have said had he not been slain 30 years ago.

"I'd think he'd want me to say to all the gay and lesbian kids out there tonight who have been told that they are less than by their churches, and by the government, or by their families that 'You are beautiful, wonderful creatures that are valued. And no matter what anyone tells you, God does love you and very soon I promise you that you will have equal rights, federally, across this great nation of ours,'" Black said. "Thank you, God, for giving us Harvey Milk."

"WALL-E" also earned director Andrew Stanton his second Oscar after "Finding Nemo" for Best Animated Feature. Among the people he thanked were his high school drama teacher for casting him in "Hello, Dolly!" A scene from the classic film is a pivotal live-action scene in "WALL-E."

"Creative seeds are sewn in the oddest of places," Stanton said.

Jerry Lewis accepted his Jean Hersholt Humanitarian honorary Oscar from fellow comedian Eddie Murphy, who referred to the Muscular Dystrophy Association champion and legendary comedy actor as " the world's most famous overgrown kid."

"For most of my life, I thought that doing good for someone didn't mean that you would receive commendations for that act of kindness, at least until now," Lewis said. "This award touches my heart and the very depth of my soul because of who the award is from and those who will benefit. The humanity I feel is staggering and I know it will stay with me for the rest of my life."

Not surprisingly, film and stage actor Hugh Jackman opened his hosting duties at the ceremonies with some singing and dancing, and earned a standing ovation for his efforts. Jackman, who starred in the epic romance "Australia," noted that the industry was downsizing due to the state of the economy: "Next year I'll be starring in a movie called New Zealand."

He then proceeded to sing and dance his way through a comedic introduction of the top nominees complete with low-budget sets.

But Jackman wasn't the only one providing the laughs at the ceremonies.

Comedy actor Ben Stiller made an impression during the presentation of the Best Cinematography Oscar by lampooning "retired" actor Joaquin Phoenix's recent bizarre appearance on David Letterman. He was questioned by co-presenter Natalie Portman about his aloofness.

"I just want to retire from being the funny guy," said a fake-bearded Stiller, who also donned sunglasses and a Phoenix-like disheveled hairdo.

Academy Award producers Laurence Mark and Bill Condon promised surprises with the presenters for the ceremony and delivered a performer to praise each of the five actors and actresses in the supporting and lead categories who were nominated.

Sophia Loren, Marion Cotillard, Halle Berry, Shirley McLaine and Nicole Kidman presented the nominees for Best Actress; while Robert De Niro, Ben Kingsley, Anthony Hopkins, Adrien Brody and Michael Douglas honored the performers nominate for Best Actor.

De Niro said of his former co-star Penn, "How did he do it? How did Sean Penn for so many years get jobs playing straight men?"

He also noted that Penn "gently reasons with the paparazzi."