"We are a nation of Christians and Muslims, Jews and Hindus — and non-believers. . . . We are shaped by every language and culture, drawn from every end of this Earth; and because we have tasted the bitter swill of Civil War and segregation, and emerged from that dark chapter stronger and more united, we cannot help but believe that the old hatreds shall some day pass; that the lines of tribe shall soon dissolve; that as the world grows smaller, our common humanity shall reveal itself; and that America must play its role in ushering in a new era of peace."

Obama acknowledged the challenges facing the country throughout his 2,400-word address, delivered before a teeming throng at the Capitol and stretching forth on the National Mall.

"Our challenges may be new. The instruments with which we meet them may be new," Obama said. "But those values upon which our success depends — hard work and honesty, courage and fair play, tolerance and curiosity, loyalty and patriotism — these things are old. These things are true. They have been the quiet force of progress throughout our history."

So "what is demanded," the new president said, "is a return to these truths."

"What is required of us now is a new era of responsibility — a recognition, on the part of every American, that we have duties to ourselves, our nation and the world," he said.

These are duties "we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task. This is the price and the promise of citizenship," he said.

"This is the source of our confidence — the knowledge that God calls on us to shape an uncertain destiny," he said.

Regarding the economy, Obama said the situation "calls for action, bold and swift, and we will act — not only to create new jobs, but to lay a new foundation for growth."

Obama said that "there are some who question the scale of our ambitions — who suggest that our system cannot tolerate too many big plans." But "their memories are short," he said. "For they have forgotten what this country has already done, what free men and women can achieve when imagination is joined to common purpose, and necessity to courage."

Pope Benedict XVI, congratulating Barack Obama on his inauguration, prayed that he would remain steadfast in his dedication to promote understanding, co-operation and peace in the world.

The Pope, in a Jan. 20 telegram, told Obama that he prayed God would "grant you unfailing wisdom and strength in the exercise of your high responsibilities."

In a Jan. 16 letter to Obama, the president of the U.S. Conference of Catholic Bishops told the new U.S. president it would be "a terrible mistake" to reverse current policies on embryonic stem cell research, conscience protection and other life-related matters.

Such actions, proposed by various members of the new administration, "could introduce significant negative and divisive factors into our national life, at a time when we need to come together to address the serious challenges facing our people," said Cardinal Francis George, who is also archbishop of Chicago.

Earlier, in a Jan. 13 letter to Obama, Cardinal George pledged that he and his fellow prelates will work with the incoming administration of Barack Obama and the 111th Congress to "advance the common good and defend the life and dignity of all, especially the vulnerable and poor."

George offered a broad outline of policy priorities that concern the U.S. bishops, ranging from economic recovery that covers all segments of society to protecting the lives of the "most vulnerable and voiceless members of the human family," especially unborn children.

Before the inauguration ceremony, Obama and then-Vice President-elect Joseph R. Biden Jr. and their wives took part in a morning prayer service at St. John's Episcopal Church, across Lafayette Park from the White House. The sermon at the private service was delivered by Bishop T.D. Jakes, pastor of the Potter's House megachurch in Dallas.

Obama and Biden then went to the White House for a coffee with their predecessors, President George W. Bush and Vice President Richard B. Cheney.

The day before, both Obama and Biden joined volunteers in various service projects on the national observance of the Rev. Martin Luther King Jr. birthday holiday, which was designated as a national day of service.

Among the numerous service projects in the nation's capital was a coat drive sponsored by the Knights of Columbus. The fraternal organization purchased 7,800 coats from Oshkosh B'gosh and London Fog and distributed 1,200 of them at three Catholic churches in Washington.