All on eyes on Ellen: our favorite trailblazer already has America at her feet--and now, as the first openly gay host of the Academy Awards, Ellen DeGeneres is ready to win hearts all over the world.

It should come as no surprise that Ellen DeGeneres is hosting the 79th annual Academy Awards. How could she not? With her warm. welcoming vibe and unparalleled comic timing, she's probably the best performer alive for the job But the occasion is no less momentous for that.

Think of it: On February 25, on televisions around the globe, a handsome, out American lesbian sporting a tuxedo will be the face of the Oscars, the mother of all awards shows, the biggest night in the entertainment universe. And Ellen will be making history--again.

DeGeneres is the 66th performer to host the Academy Awards, and only the second woman to host solo. There's a reason that group is so small. "The show is L-I-V-E, and there's no two ways about it," says Sid Ganis, president of the Academy of Motion Picture Arts and Sciences. "It doesn't mean it's live minus an hour, it means it's live."

Live is what Ellen DeGeneres does best. Remember her knockout performance as host of the 2001 Emmy Awards? (Another historic first: out lesbian, tux, etc.) TV's big awards night had been canceled in the wake of September 11 and, amid fears of both bad taste and further violence, canceled again. Third time around, DeGeneres got the green light, took the stage, and gave America some much-needed communal laughs. Her send-up of Bjork's outrageous swan dress, which had been the talk of the 2001 Oscars, got gender into the joke. Striding onstage bare-legged, DeGeneres seemed to be saying, See how silly it would be for me to come out here in a dress? Even more to the point was her thank-you to CBS head Leslie Moonves, who was seated in the audience, for choosing her to host: "What would bug the Taliban more than seeing a gay woman in a suit surrounded by Jews?"

Famous as she was then, we didn't know her as we do now. Since 2001, DeGeneres has logged at least 1,000 hours of TV time--and won 15 Daytime Emmys--with a daily talk show that industry watchers once snickered at, predicting it would never get off the ground. Now The Ellen DeGeneres Show is one of TV's true powerhouses, and Ellen herself, having long ago transcended gay fame, is closing in on Oprah fame.

No other performer has so successfully conquered Main Street America while living an authentic gay life. At 49, happily coupled with Portia de Rossi, DeGeneres is sharper than ever at her craft, and while she has always had an abundance of all-American good looks, she's become quite beautiful--leaner, sexier, more extraordinary--a simply smashing woman. DeGeneres has found her inner Cary Grant at the exact moment America has come around to embracing him. Or maybe DeGeneres just charmed America until all resistance crumbled.

What has propelled her to excel in so many ways, to log so many firsts as an entertainer and a person? "A strong belief that there are no limitations and that I can accomplish anything," the star says. "I have always felt like if I set my mind to it, it can happen."

She set her mind to hosting the Oscars long ago. "That was a goal I had from the beginning of my career," DeGeneres explains. "I wanted to be the first woman comedian that Johnny Carson invited over to the couch and that happened, and I've achieved other goals, but this is one of the biggest."

Perhaps it was inevitable, then, that Ganis and producer Laura Ziskin decided the 79th Academy Awards hosting gig had DeGeneres's name on it. "This was the time, this was the year," says Ganis. "Ellen has gotten to a place now where audiences know her, not a character she's playing. Audiences adore her. And I think that's enduring. It gets down to 'This is who I am,' and as she portrays who she is to the audience, they just eat her up. They love her more and more."

So do we.

How long did it take you to say to yourself, "Wow, I'm the first gay woman to host the Oscars"?

I didn't really think of it that way. I'm excited just as a woman, as a human being. There have been very few people, period, who get the opportunity to do this. I'm proud of things I've been able to accomplish, but at the same time I never think about [being gay], you know? I'm just living my life. The only thing that's different about me is who I sleep with. I don't wake up every morning and say "I'm gay!" [Laughs]

They always say, "The Academy Awards, coming to you live in front of a billion people!" How do you control your nerves when you're going out to do that kind of show?

Well, there's a nervousness, but there's also an excitement. A billion people, that means people all over the world. For some people, they're getting up at 4 in the morning to watch, and I want to be aware of them. I'll deal with some of that in the show. It's an incredible coming together-people come together. You want to do your best, naturally, but it's also just letting it happen once you're out there. It's just enjoying the whole thing. I just want to be present; I don't want to miss out on the experience.

Can you tell me anything about what you're planning?

No. [Laughs]

You've done great costume things before, like your Bjork swan costume at the 2001 Emmys. Can you tell us, will there be any costume shenanigans at the Oscar show?

There might. That's all I'm going to tell you. But Bjork is pretty hard to top.

OK, and what are you wearing?

Well, there's been actually some pressure with people wanting me to wear a gown.

No! Ewww.

Yeah, it's surprising, quite a few. And that's understandable; it's a glamorous night. But a gown is just not what I'm most comfortable in. It's not what works best for me. Fortunately, several designers have come forward [wanting to design for me].

Will they design for Portia as well?

We usually do try to coordinate. At least this time we won't be walking the red carpet together. She can wear heels as high as she likes. I'm taller than she is, but when we're together and she's in her heels, I always feel like Tom Cruise next to Nicole Kidman.

Everybody practices their own private Oscar acceptance speeches in the mirror. What's yours?

I go to bed every night in gratitude and wake up every morning in gratitude. So that's kind of my acceptance speech. I'm an incredibly lucky woman, and I get reminded of that every day.

Who's your favorite Oscar host?

I liked them all. Billy Crystal: I thought his opening movie sequences were so entertaining. Whoopi, of course. I liked Jon Stewart. I thought David Letterman was great even though some people had a little bit of a different reaction to him.

Are you interested in Hollywood golden age history?

I appreciate it, but I don't watch old movies all the time or anything.

Portia has such a classic look--I was wondering if there's any actress from that era she reminds you of.

She's doesn't remind me of anyone. She's so unique. But she's an amazing actress. She's got so much interest in her right now and so many offers to do so many things--her career is about to take off again, and I can't wait for people to see. People just know her from Ally McBeal and Arrested Development and think of her as that character, when she's so completely opposite of that.

You've been together two years now. What effect do you think she's had on you?

Obviously, I've done interviews where I've been in different relationships and I've said I'm happy. And it's kind of weird to kind of chronicle my life in interviews. I could say the same thing I've said in every relationship: I'm happy. But there's happiness and there's love, and then there's completion.

Wow.

Obviously, in interviews you don't share, "It's great, and then add "but it's not perfect." Because you always think, That's what relationships are; there's always things that aren't exactly right. But to actually have that exact perfect fit ... It doesn't take away from any of the relationships that I've had, 'cause I've had amazing relationships. And I'm so happy to have had 'em, and I hope everyone feels that way. But I feel like I found my perfect fit.

That's wonderful.

You don't know the difference until you see the difference. She gives me everything. She's taught me lessons about myself, and I feel like I've taught her. We've both changed and grown, and we just feel like, Oh, OK. This is completion.

How do you feel you've changed her?

I don't know. I mean, I think that's personal. I'm not gonna share everything with you, but I think we've both just learned a lot. I think that people are mirrors for each other. When you have that, it's the only time you'll really be able to alter certain things about yourself. And I think that's what she and I do for each other. We really have found a peace and joy that both of us had had but didn't really fully embrace.

Have you met Portia's grandmother? [In her 2005 Advocate interview, De Rossi movingly described coming out to her grandmother in Australia.]

I haven't met her. She's turning 100, on Portia's birthday actually, on January 31. Portia's going back for her birthday, but I'm working, so I haven't been able to go to Australia. Her grandmother and her mother watch the show every day. [Although] I haven't met her, we've passed messages-she doesn't hear that well, so we pass messages on to one another.

Portia's a big rider. She told The Advocate that she was going to get you up on a horse. Has that happened?

I love all animals, and I've been on a horse. I'm not as addicted to it as she is. People who ride horses and have horses are passionate. They live and breathe horses, and that's who she is. She's been competing, going to shows and winning ribbons. I love horses--I just don't need to be on 'em.

Getting back to the Oscars, this is the first time you're going to be like a hall monitor, with the music playing people off. Is that uncomfortable?

Well, we don't know if we're going to have music playing people off. We may not.

Oh, that's great. [laughs]

We want it to be unpredictable. We want it to be different. We feel it's their moment and they should be able to say what they want to say. And if it goes long, it goes long. But I'm trying to get them to stop saying, "Thank you to my manager and my agent." We know that. Nobody wants to hear that; nobody cares--

Right.

But let's hear what it feels like to be onstage. We're trying to encourage people to actually speak from their heart instead of making a list. We're going to have a "ThankYou.com" backstage--and you can go to the Oscar Web site and hear them say thank you to the people they really feel like they need to thank. So they have another place to do that.

Now that there are so many awards shows, has the Oscars lost a little bit of its magic?

I think nothing can ever take away that the Oscars is the biggest event. Yeah, you have the [Screen Actors Guild] Awards and the Golden Globes and all kinds of different awards shows. And by the time the Academy Awards come on you feel like you've seen everybody. But it really is about the show itself. That's the goal every year, for the Academy Awards to bring that audience back and make it special, to make it what it should be. It is the biggest award--it's the Oscar. That's what everybody wants to have. Anything is fantastic to win, but to win an Oscar is still the most important thing you can list on your resume.

Just a quick note on your own show, which is so spectacular. Every year the woods are full of people who want to do talk shows. Is there any mistake that you would tell people to avoid--aside from competing with you? [Both laugh]

People tried to tell me what to do, what not to do, and I think whatever kind of show you're doing, it's got to be unique. It's got to be you, and no matter bow many talk shows are out there, if you're thinking about competing with somebody else, you're hurting yourself.

You've got to be honest, and it's got to be an energy that people want to watch. I have an amazing group of people I work with every day and I love coming to work, and we laugh all day and we try to put together the weirdest show we can. We don't ever want it to be normal. My goal is to make it better and better and funnier and funnier, and that's what anybody's goal should be. Whatever product you're putting out, make it the best product you can make. Whatever your job is, [try] to challenge yourself every day.