PASADENA, Calif. -- McMurphy's pub was silent.

A slew of Penn State faithful watched as Nebraska defeated Miami on Jan. 1, 24-17.

"There goes any hope Penn State had of a national championship," said the lone Oregon Duck fan, standing in the back of the bar.

While 'Husker fans breathed a collective sigh of relief, most Penn Staters felt a knot develop deep in the pits of their stomachs.

"It's really disappointing knowing that we probably won't be able to win the national championship now," said Penn State graduate Bill Terry. "Even though we are No. 1."

Suddenly, playing in the Rose Bowl no longer seemed so rosy.

But, as the clear blue Southern California skies blossomed on Jan. 2, the pageantry surrounding the Tournament of Roses came out.

The day began with the 106th Rose Parade, which offered an array of colorful floats comprised of dried tulips, mums, daffodils and other flowers.

"It's so beautiful, so colorful," one Rose Parade spectator said, gazing at the more than 50 floats as they passed by.

The theme of this year's Rose Parade was "Sports: A Quest for Excellence." Floats of gondola races, gymnastics and falconry made their way along the 5-mile parade route.

Also, bands from all over the country, including the Penn State Blue Band, marched in front of thousands of spectators.

"How long is it?" said Darryl Johnson, a Los Angeles bus driver. "Five miles? That's a long walk man."

But the participants did not seem to mind, especially the parade's grand marshal and pro golfer Chi Chi Rodriguez, who sported a huge grin as he waved to the crowd along Colorado Boulevard.

"Isn't this unbelievable?" he shouted to those people lining the streets.

Some people camped out the night before to get a prime viewing spot. Sleeping bags and thick blankets covered the sidewalks.

For the 40th straight year, rain clouds did not threaten the completion of the parade.

The Rose Parade, which preceded the 81st Rose Bowl, was seen by more than 450 million people in countries worldwide.

"I don't think there's another parade like the Rose Parade in the world," Rose Parade participant Iron Eyes Cody said. "It has a special feeling -- I feel it and so does everyone else. I wouldn't miss it for anything."

As the Rose Parade concluded, at least some onlookers made their way to the venerable Rose Bowl to watch Penn State battle Oregon.

Some Duck fans from Eugene, Ore., wore shirts that read: Ducks fly south for the winter.

Although Nebraska's victory dampened the significance of the game, most Penn State fans managed to pick themselves up for the Lions first Rose Bowl since 1923.

A vibrant compilation of yellow and green occupied one side of the Rose Bowl, while a sea of blue and white filled the other side of the stadium.

For most of the first two quarters, Oregon fans did most of the cheering, as the Ducks kept the game closer than anticipated. Duck fans waved yellow and green pom-poms as Oregon's "Gang Green" defense stymied Penn State's high-powered offense.

But as the game wore on, Penn State's fan base asserted themselves. Some Nittany Lions supporters hoisted signs in the air, after the game was well in hand.

One sign read: Penn State fans want Nebraska.

Another sign read: Roses are Red. Penn State is Blue. We're No. 1 Not No. 2.

"This is an awesome spectacle," Paul Davis said, a 1979 Penn State graduate. "It's everything you can imagine it would be."

After Penn State beat Oregon 38-20, ABC's Lynn Swann interviewed Lion Coach Joe Paterno.

The crowd started chanting, "JoePa! JoePa! JoePa!"

"Two-thousand fans think you do have the best team in the country," Swann said, the pulse of the cheers increasing.

"I think I'd have to agree with them," Paterno said.