Clutching a Quran and refusing a hood, Saddam Hussein went to the gallows before sunrise Saturday, executed by vengeful countrymen after a quarter-century of remorseless brutality that killed countless thousands and led Iraq into disastrous wars against the United States and Iran.

In Baghdad's Shiite enclave of Sadr City, people danced in the streets while others fired guns in the air to celebrate the former dictator's death. The government did not impose a round-the-clock curfew as it did last month when Saddam was convicted to thwart any surge in retaliatory violence.

It was a grim end for the 69-year-old leader who had vexed three U.S. presidents. Despite his ouster, Washington, its allies and the new Iraqi leaders remain mired in a fight to quell a stubborn insurgency by Saddam loyalists and a vicious sectarian conflict.

The execution took place during the year's deadliest month for U.S. troops, with the toll reaching 108.

President Bush said that Saddam's execution marks the "end of a difficult year for the Iraqi people and for our troops" and cautioned that his death will not halt the violence in Iraq.

Yet, Bush said in a statement issued from his ranch in Texas, "it is an important milestone on Iraq's course to becoming a democracy that can govern, sustain and defend itself, and be an ally in the war on terror."

Ali Hamza, a 30-year-old university professor, said he went outside to shoot his gun into the air after he heard the news.

"Now all the victims' families will be happy because Saddam got his just sentence," said Hamza, who lives in Diwaniyah, a Shiite town 80 miles south of Baghdad.

"We are looking for a new page of history despite the tragedy of the past," said Saif Ibrahim, a 26-year-old Baghdad resident.

But people in the Sunni-dominated city of Tikrit, once a power base of Saddam, lamented his death.

"The president, the leader Saddam Hussein is a martyr and God will put him along with other martyrs. Do not be sad nor complain because he has died the death of a holy warrior," said Sheik Yahya al-Attawi, a cleric at the Saddam Big Mosque.

As a security precaution, police blocked the entrances to Tikrit and said nobody was allowed to leave or enter the city for four days.

State-run al-Iraqiya television initially reported that Saddam's half- brother Barzan Ibrahim and Awad Hamed al-Bandar, the former chief justice of the Revolutionary Court, also were hanged. However, three officials later said only Saddam was executed.

"We wanted him to be executed on a special day," National Security adviser Mouwafak al-Rubaie told state-run Iraqiya.

Sami al-Askari, the political adviser of Prime Minister Nouri al- Maliki, told The Associated Press that Saddam briefly struggled when he was taken from his cell in an American military prison but was composed in his last moments.

He said Saddam was clad completely in black, with a jacket, trousers, hat and shoes, rather than prison garb.

Shortly before the execution, Saddam's hat was removed and Saddam was asked if he wanted to say something, al-Askari said.

"No I don't want to," al-Askari, who was present at the execution, quoted Saddam as saying. Saddam repeated a prayer after a Sunni Muslim cleric who was present.

"Saddam later was taken to the gallows and refused to have his head covered with a hood," al-Askari said. "Before the rope was put around his neck, Saddam shouted: 'God is great. The nation will be victorious and Palestine is Arab.'"

Saddam was executed at a former military intelligence headquarters in Baghdad's Shiite neighborhood of Kazimiyah, al-Askari said. The neighborhood is home to the Iraqi capital's most important Shiite shine, the Imam Kazim shrine.

Al-Askari said the government had not decided what to do with Saddam's body. Issam Ghazzawi, a member of Saddam's defense team, said he was worried the body would be buried in an unmarked location.

Photographs and video footage were taken, al-Rubaie said.

"He did not ask for anything. He was carrying a Quran and said: 'I want this Quran to be given to this person,' a man he called Bander," he said. Al-Rubaie said he did not know who Bander was.

"Saddam was treated with respect when he was alive and after his death," al-Rubaie said. "Saddam's execution was 100 percent Iraqi and the American side did not interfere."

The station earlier was airing national songs after the first announcement and had a tag on the screen that read "Saddam's execution marks the end of a dark period of Iraq's history."

The execution came 56 days after a court convicted Saddam and sentenced him to death for his role in the killings of 148 Shiite Muslims from a town where assassins tried to kill the dictator in Iraq's highest court rejected Saddam's appeal Monday and ordered him executed within 30 days.

A U.S. judge on Friday refused to stop Saddam's execution, rejecting a last-minute court challenge.

Al-Maliki had rejected calls that Saddam be spared, telling families of people killed during the dictator's rule that would be an insult to the victims.

The prime minister's office released a statement that said Saddam's execution was a "strong lesson" to ruthless leaders who commit crimes against their own people.

"We strongly reject considering Saddam as a representative of any sect in Iraq because the tyrant only represented his evil soul," the statement said. "The door is still open for those whose hands are not tainted with the blood of innocent people to take part in the political process and work on rebuilding Iraq."

U.S. troops cheered as news of Saddam's execution appeared on television at the mess hall at Forward Operating Base Loyalty in eastern Baghdad. But some soldiers expressed doubt that Saddam's death would be a significant turning point for Iraq.

By CHRISTOPHER TORCHIA and QASSIM ABDUL-ZAHRA, Associated Press Writers

[Read More Here]