When it comes to the Oscars, it's not about who wins or loses, it's about who looks good doing it.

Jim Sheridan (search) and his daughters, 27-year-old Kirsten and 31-year-old Naomi, all screenwriting nominees for the Irish immigrant tale "In America," (searchwere well aware of the red carpet as they prepared for Sunday's 76th annual Academy Awards.

"I'd like to look like Grace Kelly in the '60s," Naomi told The Associated Press as the Sheridans began "shopping" for their free Oscar dresses, which were practically thrown at them by publicity-hungry designers.

"Maybe we'll put my dad in a red dress -- that'll get us noticed," joked Kirsten.

It's true that the right Oscar outfit makes a lasting impression.

More people remember a glamorous Gap-clad Sharon Stone at the Academy Awards in 1996 than who took home the top acting trophies that year (Susan Sarandon and Nicolas Cage). Salma Hayek, still a struggling starlet in 1997, stole the spotlight when she wore a beaded Giorgio Armani gown and a diamond tiara.

Last year, nominee Renee Zellweger (searchwon rave reviews for her sexy red Carolina Herrera gown even though Nicole Kidman (search), who went with a more demure midnight-blue Jean-Paul Gaultier dress, was named best actress.

And then there's poor Celine Dion (search), who is probably still haunted -- or at least taunted -- by the backward white coat and fedora by John Galliano for Christian Dior that she wore on the red carpet in 1999.

This is why the search for the perfect Oscar-night ensemble is more than a last-minute shopping spree.

Some designers begin working with likely nominees months before the contenders are officially announced. Scores of jewelers, accessory-makers and hair and makeup stylists set up temporary shops in Los Angeles the week before the ceremony.

Holly Hunter (search), an Oscar winner for 1993's "The Piano" and a nominee this year for "Thirteen," has had a long collaborative relationship with Vera Wang.

Hunter turned up in the front row of Wang's New York Fashion Week runway show earlier this month, and she wore a Wang-designed purple halter gown to Sunday's Screen Actors Guild Awards.

"A really fabulous designer will have ideas that I won't," Hunter told the AP.

Meanwhile, the Sheridans paid a recent visit to the Kwiat diamond showroom in New York and then made stops at the Max Azria BCBG and Laundry by Shelli Segal stores.

"There are so many A-list actresses who will be dressed by the Diors and Valentinos, I'm not trying to compete, I'm not going to try to outdo them," said Kirsten.

"I'm thinking of something a little more independent -- like our film," she added.

That doesn't mean she's thinking small: Kirsten was practically giddy as she tried on a 5-carat cushion-cut diamond necklace, while Naomi favored a 38-carat necklace featuring two large round stones surrounded by Marquis-cut diamonds that would retail for about $200,000.

"The kind of jewelry I usually buy is the $8 stuff you can get at the airport," said Kirsten. Then she wondered aloud if jewelers would provide security for the diamonds that would have to be returned the day after the event.

Even Sheridan, a veteran Oscar nominee for "In the Name of the Father" (search) and "My Left Foot," got caught up in the fashion frenzy as he eyed gold and diamond cuff links.

"When I went (to the Academy Awards) for `In the Name of the Father,' I didn't realize what a big deal the red carpet is. ... This time I want to wear something really nice," he said. He'll probably wear a classic Brooks Brothers or Ralph Lauren tuxedo.

Jennifer Royle, public relations coordinator for Laundry, said the Sheridan sisters seemed a little overwhelmed by all the attention they received at the store, but stayed true to their own sense of style.

"They knew what they wanted: A dress was either an immediate yes or an immediate no," Royle said. "I think they left happy. Each girl took one dress."

Kirsten's choice was a V-neck dress with lace panels on the bodice, a red sash around the waist and full black ball skirt. Naomi liked a long black matte jersey dress.

The dresses were a gift from the company. "For the right celebrity, we would absolutely give them anything they wanted with the hope they would wear it in public and get them photographed in it," said Royle, who also noted that Laundry offers dresses to TV show costumers just to see the company's name listed in the credits.

About 50 percent of the garments that are sent out to celebrities get worn, including dresses that stars specifically request, according to Tara Hannert, BCBG's public relations director.

"The kind of exposure you get from being photographed on the red carpet and Joan Rivers asking, `Whose dress are you wearing?' ... There is no other marketing tool like it -- it's worth jumping through a few hoops to get there," she said.

For the Oscars, those hoops include giving Naomi a blue halter dress and a red satin gown to consider, and Kirsten a cream-colored strapless dress with black embroidery and a tulle skirt.

The fact that the Sheridans asked to visit BCBG has left Hannert hopeful: "It's a dream for any designer to be worn on the Oscar red carpet."