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Iraq war drama "The Hurt Locker" is set for for an Oscars shoot-out with science-fiction epic "Avatar" Sunday as the movie industry descends on Hollywood for the 82nd Academy Awards.

The streets around the Kodak Theater had been cordoned off and the red carpet had been rolled out as organizers fine-tuned preparations for Sunday's showbusiness spectacular, which gets under way at 5:00 pm (0100 GMT Monday.)

The critically acclaimed "Hurt Locker," about a bomb disposal squad in Baghdad, has emerged as a clear favorite after winning a string of awards seen as key indicators of likely success.

But the movie's momentum has been shaken in the home stretch after a string of embarrassing scandals over illegal campaigning which has led to one of its producers being banned from Sunday's ceremony.

The film, which is nominated for nine Oscars along with "Avatar" has also faced stinging criticism from veterans about its portrayal of soldiers, as well as a lawsuit from a serviceman alleging he was the inspiration for the movie.

Pundits told AFP a flood of last-minute ballots were cast shortly before voting ended on Tuesday, a factor which could indicate either a late surge for or against "The Hurt Locker."

"A lot of voters turned in their ballots pretty soon after they received them," said Scott Feinberg, who runs the andthewinneris.com blog.

"I think what's happened in the last few days is going to be too little and too late to impact the result."

Although Oscars organizers doubled the field of best picture nominees to 10 this year, most analysts see the contest as a two-horse race between "The Hurt Locker" and "Avatar," James Cameron's blockbuster which is the highest grossing film in history with more than 2.5 billion dollars in earnings.

The race has been given added spice by the fact that "The Hurt Locker" was made by Cameron's ex-wife Kathryn Bigelow.

Bigelow, 58, is also favorite to pip her former spouse for the best director Oscar, which would make her the first woman in history to win the award.

"No matter what happens in the best picture race I don't think Kathryn Bigelow is going to be denied," said Maxim Film critic Pete Hammond. "It's too irresistible a story."

Other nominees for best director include Quentin Tarantino for "Inglourious Basterds," Lee Daniels for harrowing drama "Precious" and Jason Reitman for the recession-era dramedy "Up In the Air."

Daniels warmed up for the Oscars on Friday by watching "Precious" take four top honors at the Spirit Awards, the annual salute to independent film.

Clear favorites have emerged in most of the acting categories, but Sandra Bullock could face a stronger-than-expected challenge in the best actress race.

Bullock, who won a Golden Globe and Screen Actors Guild Award for her part in the drama "The Blind Side," faces competition from Meryl Streep ("Julie & Julia"), Carey Mulligan ("An Education") and Gabby Sidibe ("Precious.")

In the best actor category, popular veteran Jeff Bridges is expected to claim his first Oscar at the fifth attempt.

The 60-year-old has already won at the Golden Globes and SAG awards for his heart-wrenching portrayal of a washed up country singer in "Crazy Heart" and claimed another accolade on Friday at the Spirit Awards.

"Crazy Heart is so dear to me, it's really a gem of an independent film," Bridges said. "What makes these gems shine is passion."

Other nominees include George Clooney for "Up In the Air," Morgan Freeman for "Invictus," Jeremy Renner for "The Hurt Locker" and Britain's Colin Firth for "A Single Man."

The junior acting awards are considered a formality, with Austria's Christoph Waltz set to win best supporting actor for his turn as a sadistic Nazi in Tarantino's "Inglourious Basterds," and Mo'Nique regarded as a shoo-in for best supporting actress for her role as an abusive parent in "Precious," which netted her yet another award at the Spirit Awards.

AFP