BY DIANA MOSKOVITZ

There are few signs pointing the way to Calle Ocho, but that's OK. Long before the party appears, music leads the way.

Blocks before the party officially starts, makeshift stands sell Inca Kola and Sunkist. Chalkboards outside corner stores advertise cerveza más fría.

Be it a cape, a bandanna or a dress, partygoers know there is no wrong way to wear your favorite country's flag.

Sunday marked the 31st year of Calle Ocho, a festival that began in 1978 as a way to celebrate Latin American culture. It was sponsored by the Kiwanis Club of Little Havana.

The party was its typical loud, flamboyant and grand self but also a bit scaled back.

This year, the festival stretched 16 blocks, from 11th and 27th avenues on Southwest Eighth Street, seven blocks fewer than previous years.

But trimming away a few blocks didn't damper the party for those who came.

There were stages packed with entertainment.

Vendors sold merchandise decorated in any and all flags.

Where there wasn't a stage, street-corner performances sprang up.

Juan German, 22, said he came from Orlando for the event, staying in South Florida with family.

On Sunday afternoon, after hours at the celebration, German sat on a stoop along Eighth Street, enjoying his chicken on a stick.

''Every year is interesting,'' he said in between bites.

For others like Arai Aguiar, this was their first year.

She came with several other women from La Cubanita restaurant, dressed in red dresses and wide straw hats.

Aguiar doled out small samples of dulce de leche and guava desserts to Calle Ocho partyers, all while wearing red high heels and keeping her smile.

''I love it,'' said Aguiar, 19, in between serving samples. ``It's an awesome event.''

Still, the dour economy managed to reach Calle Ocho.

There were fewer blocks and, some folks felt, revelers seemed a bit more hesitant to spend.

Said George Winfrey, 42, who is a regular Calle Ocho attendee: ``More people are walking around, but not spending their money.''