Billy Crystal and Oscar weren't at the Tusten Theater on the night of Aug. 6.    But, no matter. There were pretty girls in long dresses, envelopes and some real winners and losers in what turned out to be a photo finish at the awards ceremony of the Narrowsburg International Independent Film Festival.    Aside from appearances on Main Street from Aug. 2 to 9, the stakes were very high for festival participants.    NIIFF, in its second year, has become a recognized part of "the circuit," hundreds of venues worldwide open to independent filmmakers for exposure of their productions.    "It is part of the business of making a film," said Stuart Strutin, film marketer and distributor, who participated in several seminars at the festival.    The chance to connect with others in the field is every bit as important as the screenings and eventual awards.    "I've met someone at every festival who has affected my life and work," said John Galligher, director and producer of "Blue Moon," starring Ben Gazarra and Rita Moreno, a chief contender for best feature.    More than 40 films, including shorts, documentaries and features, were screened at the festival, bringing many strangers to the area.    And although most were not near to being residents of Tinsel Town, they represented a wide cross section of the striving international film industry.    "We're a community of artists working together," said Paul Parducci, screenwriter and director.    Parducci, Strutin and Galligher also laughingly agreed that "you have to be a little nuts to choose this way of life."    NIIFF is the brainchild of French-born Jocelyne Castellano, herself a film marketer, who moved into the area nearly three years ago.    Narrowburg's quiet beauty struck her. The quaint Main Street, skirting the placid Delaware River, came complete with a sizable, well-maintained theater, an arts center, an inn and plenty of parking.    "I thought it would be perfect for a film festival," said Castellano, who created the event from the ground up two years ago.    "Do you know how hard it is to run something like this, how delicate an endeavor it is?" said Michael Sergio, director and producer and a veteran of "the circuit."    "And they got it done," he added, giving special kudos to the festival staff. According to Sergio, "Sundance was nothing in its sophomore year." The now-legendary festival in Park City persisted, and the rest is history.    Sergio, whose film "Under Hellgate Bridge" had the premiere show spot on the first day, had planned to go back to New York City and perhaps return for the awards.    "I couldn't leave," he said. He described how he was drawn into the community of artists, who had little else to do after screenings but hang out with each other into the night.    "It was almost a film festival retreat," Sergio said.    Although Sergio's production company, El-Train, is based in New York City, he feels a strong connection to Sullivan County. Unable to move anywhere in traffic, he walked the miles from Exit 104 on Route 17 to the Woodstock Festival in 1969, creating a wealth of fond memories.    Also a sky diver famed for parachuting into the 1986 World's Series in New York City, Sergio trained for the jump at airports in Bloomingburg and Gardiner.    So it was not a stretch for him to see Narrowsburg as a "place of beauty, encompassing the spirit."    If some locals seemed more than a bit reluctant to participate, the young people of the community who came religiously to the screenings impressed him greatly.    "They embodied having dreams, that anything was possible," said Sergio, who intends to reward "their adventurous spirit" by giving some a chance in his future productions.    After several tearful acceptance speeches at the awards ceremony on Aug. 9, Sergio rose to accept prizes for best director and best feature, "Under Hellgate Bridge," edging out odds-on favorite "Blue Moon."    To criticisms involving prizes at the festival, Sergio insists that just being there, making connections and, of course, winning are prizes enough.    "This is a serious business," he said. The win at Narrowsburg will now be added to wins at the Nashville Independent Film Festival and the prestigious Regal Dreammaker Award.    "Under Hellgate Bridge" is now due for nationwide release later this year."    "Just you wait," Sergio said. "The word's around, and this festival could put Narrowsburg and the Delaware Valley on the map."    "Sundance is not the end all," Strutin agreed.