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The Lewis Carroll update “Alice in Wonderland” won the first prize of the night, claiming the art direction Oscar. It also won for costume design.

The show opened with co-hosts Anne Hathaway and James Franco inserted into a montage of scenes from best-picture nominees, built as a series of dream sequences reminiscent of “Inception.” The footage included such guests as Morgan Freeman and last year’s Oscar co-host Alec Baldwin.

Franco started off telling Hathaway how beautiful she looked. Hathaway shot back, “You look very appealing to a younger demographic, as well.”

Entertainment writers Lynn Elber, Christy Lemire and Anthony McCartney contributed to this report.