Post-production work as well as legal tangles, including copyright, delayed the release of Kamal Hassan's film, which turned out to be one of the biggest grossers this year.

Scripted by Kamal Hassan and starring Asin of "Ghajini" fame and many others, including actor-politician Jaya Pradha, the film saw the actor in 10 roles, only to eclipse the efforts of thespian Sivaji Ganesan, who had played nine characters in "Navaratri" in the 1960s.

The audio of "Dasavatharam" was launched by action hero Jackie Chan at a glittering ceremony in Chennai with some of the top brass of Indian cinema – Amitabh Bachchan, Mammooty and Mallika Sherawat.

The film, produced by Oscar V Ravichandran and released after nearly two years since it went to production, did well at the box office.

Superstar of Tamil cinema Rajinikanth failed to continue with his winning streak of "Sivaji – The Boss" as his latest flick 'Kuselan' bombed.

The film's debacle forced Rajni and other producers to compensate a part of losses suffered by the distributors lest they should not release his future ventures. Rajni's next film, the sci-fi "Endiran", changed hands after the previous producer Ayngaran International admitted it cannot shoulder the huge costs.

Sun Movies, an arm of the multi-crore Sun Network conglomerate promoted by Kalanidhi and Dayanidhi Maran, took over the production of "Endiran" which is believed to have been produced at a cost of Rs 150 crore.

Top-notch actors like Vijay, Ajith, Vikram and Surya had to contend with no hits after their big-budget films failed to impress filmgoers even as little-known and upcoming directors and actors managed to strike the right chord.

Films like "Subramaniapuram" and "Saroja", albeit lacking star-power by virtue of the cast, managed to steal the show as they not only turned out to be profitable ventures but also earned the critics' respect for their off-beat themes and realistic portrayal.

Other films such as "Abiyum Naanum", "Kaadhalil Vizhunten" and "Vaaranam Aayiram" also did well at the box office which apparently showed the maturity of the audience.

Kamal Hassan's "Marmayogi" came to a sudden halt following his differences with producer Pyramid Saimira over the budget.

The film, which was about to go to floors following photo-shoot, was "suspended" with Saimira expressing inability to continue producing the near Rs 150 crore-budget movie.

However, Kamal Hassan started his next venture, "Thalaivan Irukindran."

This year, the film industry lost one of its senior-most professionals when seasoned actor and popular villains of the yesteryears, M N Nambiar, passed away at the age of 89.

The actor had played baddie opposite former chief minister M G Ramachandran's most films and was a man who commanded respect from the likes of Rajni, Kamal Hassan and others of Kollywood.

Continuing the tradition of moving to small screen after having completed their 'stint' on silver screen, actors Ramya Krishnan and Sonia Aggarwal switched over to soaps, which continued to rule the roost even as the number of television channels keep growing in the state where reality shows are the order of the day.

Sun TV and Raj TV, two of Tamil's popular channels, expanded their businesses by venturing into film production.

The year also saw the guessing game over Rajni's entry into politics resurfacing in the wake of the actor announcing that he will undertake a state-wide tour to interact with his fans.

Known for his penchant for "punch" dialogues in his films that turn instant hit with his fans, Rajini tried to do a live act during a day-long fast organised by the Tamil film industry stressing for the implementation of the Rs 1,440 crore Hogenakkal project, which is facing Karnataka's opposition.

Rajni had strong words for those opposing it in Karnataka, where he had his early grooming.

This invited angry reactions from pro-Kannada groups in Karnataka, which threatened to stall the release of his "Kuselan" in Bangalore, a potential market for Tamil films.

Buckling under pressure, the actor came out with a self-explanatory televised statement in Kannada, expressing "regrets" for his comments, and also 'clarifying' he had only aimed his comments against those who wanted to instigate violence using the dispute.

Sri Lankan Tamils issue, which turned out to be the staple diet of all political parties in the year 2008, had its influence on tinsel town too, with the actors and others going on a day-long fast to express solidarity with the suffering civilian Tamils in the island nation.

Incidentally, both Rajni and Kamal Hassan directed their fans to not to celebrate their birthdays citing the Sri Lankan issue.

However, some film personalities who gave vent to their feelings on the Lankan issue and ended up making "inflammatory speeches," had to face the music and landed behind bars.