First off, LETTERS FROM IWO JIMA is a 2007 release, which is smart. Why would Sony/Paramount fuck themselves out of 2 possible Oscar contenders and waste them in the same year?

Second, as I see it, FLAGS could very well win Best Picture.

However, I also see THE DEPARTED winning Best Director, since Eastwood has won what, two Oscars for that same category, he'll be like Oliver Stone was for JFK. Alot of press and heat, but Scorsese is the babe this year. Besides, people wanting to vote for Scorsese can do it emotionally with a very damn good movie with them. Save for Wyler and Ford, nobody has won 3 prizes in that category.

At least thats how I see things playing.