Sixty years ago, a movie character named Harry Bailey raised a glass and said, "A toast ... to my big brother, George. The richest man in town!"

And the richest -- in inspiration -- in the past century of cinema. Last night, the American Film Institute crowned "It's a Wonderful Life" the No. 1 movie on its "100 Years ... 100 Cheers" special on CBS.

The 1946 film stars Jimmy Stewart as small-town banker George Bailey, who sacrifices much, from the hearing in his left ear to his desperate desire to see the world, for the sake of his family and friends in Bedford Falls. In response to a chorus of Christmas Eve prayers, an angel named Clarence is sent to help George realize he's had a wonderful life, after all.

Director Frank Capra worked movie magic, taking a story about a suicidal father and giving it romance, humor, heart, Christmas spirit and timeless appeal. While some critics dismissed it as Capra corn, it's become must-Christmas viewing, although now fans can watch it on DVD instead of waiting for its annual airing.

Rounding out the top 10: "To Kill a Mockingbird," "Schindler's List," "Rocky," "Mr. Smith Goes to Washington," "E.T., the Extra-terrestrial," "The Grapes of Wrath," "Breaking Away," "Miracle on 34th Street" and "Saving Private Ryan."

To qualify for the list, a movie had to be released before Jan. 1, 2005, and "inspire with characters of vision and conviction who face adversity and often make a personal sacrifice, for the greater good. Whether these movies end happily or not, they are ultimately triumphant -- both filling audiences with hope and empowering them with the spirit of human potential."

The AFI relied on a jury of 1,500 directors, screenwriters, actors, editors, cinematographers, critics and historians, to whittle the ballot of 300 to 100, announced last night in a star-studded special.

Gary Cooper and Sidney Poitier each had five movies, while Tom Hanks was featured in four. A trio of women -- Jean Arthur, Sally Field and Katharine Hepburn -- had three each.

Steven Spielberg was the most represented director, with five: "Saving Private Ryan," "Schindler's List," "Close Encounters of the Third Kind," "E.T." and "The Color Purple."

Capra was second with "It's a Wonderful Life," "Meet John Doe," "Mr. Deeds Goes to Town" and "Mr. Smith Goes to Washington."

The most recent movies that snagged slots: "Seabiscuit," "Erin Brockovich," "Hotel Rwanda," "A Beautiful Mind" and "Ray."

As always, AFI lists ignite discussion about inclusions, exclusions and rankings. For instance, "Pinocchio" ahead of "The Sound of Music," "12 Angry Men" and "Lilies of the Field"? "Babe" before "Boys Town"? Or "Breaking Away," a 1979 Peter Yates film about teenage boys who finds redemption in a bicycle race, as No. 8?

More than one-third of the movies on the ballot were inspired by real-life people and events but that didn't guarantee a final spot or high placement. Neither did Oscar's stamp.

"Ray" with Jamie Foxx was No. 99, while "Ali" with Will Smith didn't make the cut and neither did "Dead Man Walking," starring Susan Sarandon as Sister Helen Prejean. "Chariots of Fire" brought up the rear at No. 100.