Marc Malkin

Larry Busacca/WireImage.com

Clive Davis said it best last night at his annual pre-Grammy party: “Welcome back to music, Ms. Whitney Houston.”

Houston was looking better than ever as she made her way into Davis' soiree at the Beverly Hilton hotel. I saw her, and I can tell you she is looking happy and healthy. She shined in a Roberto Cavalli dress and Chopard jewels.

But Ms. Houston did not sing. Davis is slowly gearing fans up for Houston's comeback. He keeps giving everyone a little peek.

Everyone wanted to say hello. Houston chatted with Al Gore, and Mary J. Blige gave her a long embrace. Naomi Campbell gave a big hug, too.

So, why didn't Houston sing? Because it's not time yet. She'll be back. I'm told her new album is coming along just nicely. Insiders tell me there are already several surefire hits. If Houston continues on this so-far-successful road to recovery, there's no doubt she will be Davis' star performer at his party next year.

As for last night's shindig, it certainly didn't disappoint.

Arrivals began around 6 p.m., with John Mayer being the first to hit the red carpet. The party didn't end until close to 1 a.m.

There were 48 television crews on the red carpet along with 60 photographers.

Only at this bash could you see Portia de Rossi taking a photo of her girlfriend, Ellen DeGeneres—and Pink.

Inside, Pink was at a table with Lisa Marie Presley and Nick Lachey and his girlfriend, Vanessa Minnillo. Naomi Campbell shared a table with her one-time archenemy, Tyra Banks. Sitting between them were Girls Gone Wild guru Joe Francis and über-manager Benny Medina. Babyface was also at the table.

Sitting right in front of me was an almost unrecognizable Meg Ryan (what has she done to her face?). Other boldfaced names included Katharine McPhee, Berry Gordy, Barry Manilow, Earth Wind & Fire, Ciara, Rihanna, Priscilla Presley, Janet Jackson, Sean “Diddy” Combs, Mary J. Blige, Randy Jackson, Chris Daughtry, Mario Vasquez, Jon Voight, Lynn Redgrave, Larry King, JC Chasez and John Mayer.

When Smokey Robinson performed “My Girl,” I couldn't help but chuckle at the sight of Kid Rock dancing with his hands in the air.

As most everyone was dancing while Akon performed “I Wanna Love You,” I watched Al and Tipper Gore and Quincy Jones do a group hug.

When Fergie and the Black Eyed Peas performed, I spotted Sharon Osbourne chatting with Slash and...Lionel Richie.

Following hoofers like Christina Aguilera, American Idol's country crooner winner Carrie Underwood warned the audience, “I'm not much of a dancer.”

Pink proved there's a lot more to her than edgy pop music. Davis specifically asked her to cover a Janis Joplin song. Sitting on a bar stool, Pink gave me goose bumps as she gave a full-throttle performance of “Me and Bobby McGee.” Pink joked, “I always wanted to be invited to this party.”

Justin Timberlake was also on the bill, but he had to cancel at the last minute because he apparently had the flu. Sources tell me he appeared ill earlier in the week during Grammy rehearsals. “He was coughing and sneezing and sounded a little hoarse,” one eyewitness told me.

Davis certainly saved the best for last. Jennifer Hudson performed “And I Am Telling You I'm Not Going” for the first time since she sang it while filming Dreamgirls. Davis said it would be the only time Hudson would perform the legendary torch song in public. And that wasn't all. Ms. Hudson had everyone hootin' and hollerin' when she ended the night with “I Am Changing.”

Even though Hudson was eliminated from American Idol, that doesn't mean the show's producer, Nigel Lythgoe, isn't asking her for some help. When he saw Hudson during the dinner portion of the evening, a fellow partygoer reports, “Nigel gave Jennifer a hug and said, 'American Idol hasn't gotten an Emmy, so you have to bring us home an Oscar.' "