GRACEFUL MOVES + LOVE STORY = POETRY IN MOTION.

Byline: Glenn Whipp Film Critic

Taiwan's Ang Lee isn't the first person you'd think of to direct a Hong Kong action movie, which, in turns out, makes him the perfect person to direct a Hong Kong action movie. His new film, ``Crouching Tiger, Hidden Dragon,'' contains as much poetic purpose as it does physical combat, resulting in an epic love story that is as original as it is invigorating. It's the year's best movie.

Lee is an expert hand at putting his own spin on unlikely subjects, ranging from English literature (``Sense and Sensibility''), the Civil War (``Ride With the Devil'') or '70s suburban angst (``The Ice Storm''). In each case, Lee's outsider status gave him the freedom to uncover surprising nuances and reveal societal conflicts in all their contradicting glories. His movies are provocative, insightful and, above all, entertaining.

``Crouching Tiger'' is Lee's supreme achievement, an elegant film that both physically and spiritually redefines its genre. It's one of those rare delights where a host of elements and choices - casting, choreography, cinematography, writing, music, production design - come together in a heady mix, creating something altogether unique and inspiring. The fact that the filmmakers were able to do this on an epic scale with a minimal budget should serve notice that great art, not to mention grand entertainment, need not come with an exorbitant price tag.

The film's pulpy story unfolds in the first 20 minutes. It's early in the 19th century, and legendary warrior Li Mu Bai (Chow Yun Fat) has decided to hang up his sword so he can lead a more contemplative life. This isn't just any sword; it's the famous Green Destiny, a blade that has brought Li ``as much trouble as glory.''

Li asks his longtime friend and fellow warrior Yu Shu Lien (Michelle Yeoh) to take the sword and give it to Sir Te (Lung Sihung), a revered leader. Shu Lien wants Li to accompany her on the journey, but Li resists. The two love each other, but have never acted on their feelings, placing their calling before their hearts. As one of the characters puts it: ``When it comes to emotions, even great heroes can be idiots.''

Shu Lien presents the Green Destiny to Sir Te. At his home, she meets Jen (Zhang Ziyi), the seemingly innocent daughter of the governor. Jen is to be wed in an arranged marriage, but she shows more interest in Shu Lien's martial arts skills than she does in her wedding plans. Her interest grows even stronger when a masked bandit makes off with the Green Destiny.

It's during this nighttime robbery sequence that ``Crouching Tiger, Hidden Dragon'' moves into high gear. Shu Lien chases the thief, the two engaged in an artful ballet that hops, skips and trampolines over village rooftops, completely unrestrained by the laws of gravity. We haven't seen a dance like this since Gene Kelly splashed around that lamppost in ``Singin' in the Rain.'' And the great news is, ``Crouching Tiger'' is only getting warmed up.

Li and Shu Lien hunt down the sword and confront an old nemesis, Jade Fox (Cheng Pei Pei) and a new one in Jen, who decides that an arranged marriage isn't her destiny after all. This is one of the movie's inspired U-turns, as is a glorious flashback sequence that reveals Jen's true character. Such is Lee's command: He can insert a lengthy sequence from another place and time right in the middle of the movie without missing a beat.

Meanwhile, the fighting comes fast and furious. The man behind the outrageous choreography in ``The Matrix,'' the incomparable Yuen Wo-Ping, stages the action with an astounding combination of grace and ferocity. Each sequence is more dazzling than its predecessor, which is saying something since audiences have a habit of breaking into applause after that first breathless rooftop ballet.

``Crouching Tiger,'' though, never loses sight of its story or its characters, which are thoroughly brought to life by the outstanding cast. Chow might just be the most charismatic actor working today, and Yeoh (best- known for her work in the James Bond movie ``Tomorrow Never Dies'') gives Shu Lien a melancholy maturity that is haunting to watch.

As good as they are, newcomer Zhang steals the movie, electrifying as the passionate and petite young woman who will knock down anything that stands in her way. Forget Charlie's Angels. Jen could whip all three of them with one hand tied behind her back and still have time to romance Charlie.

This ennobling of women - not at all at the expense of men - is one of the movie's freshest conceits. Tan Dun's sumptuous score, aided immeasurably by Yo-Yo Ma's haunting cello - adds to the film's romantic and tragic sweep, just another extraordinary element in a movie that, like its characters, seems to belong to another world.

``CROUCHING TIGER, HIDDEN DRAGON''

(Rated PG-13: martial arts violence, some sensuality)

The stars: Chow Yun Fat, Michelle Yeoh, Zhang Ziyi and Chang Chen.

Behind the scenes: Directed by Ang Lee. Screenplay by James Schamus, Wang Hui Ling and Tsai Kuo Jung. Based on the novel by Wang Du Lu. Released by Sony Pictures Classics.

Running time: One hour, 59 minutes.

Playing: Laemmle's Colorado in Pasadena; Laemmle's Monica in Santa Monica; Laemmle's Showcase Cinemas in Hollywood; Loews Cineplex in Century City.

Our rating: Four stars

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Zhang Ziyi and Chow Yun Fat fight to protect the legendary Green Destiny sword in ``Crouching Tiger, Hidden Dragon.''