The BBC's Catherine Marston: This was the largest ever gathering of Welsh entertainers

Stars such as Tom Jones, Shirley Bassey, Michael Ball and Bonnie Tyler joined scores of Welsh entertainers at a party in Cardiff Bay.

Jones performed Green, Green Grass of Home in front of an audience of about 12,000 people, which included The Queen, the Duke of Edinburgh and UK Prime Minister Tony Blair.

Also singing was Charlotte Church, the 13-year-old classical music prodigy from Cardiff.

Sir Harry Secombe was not well enough to attend but sent a message of support.

Republican sympathies

But Wales's most popular band, the Manic Street Preachers, did not perform. They refused to play before the Queen because they regard the monarchy as "outdated".

Earlier the monarch opened the National Assembly of Wales, saying it showed "a new and significant direction in the way Wales is governed".

Bonnie Tyler was one of the stars at the party

The "informal" ceremony took place at its temporary home in Crickhowell House in Cardiff.

Royal Welsh

The brief bilingual ceremony included speeches by the Queen and the Prince of Wales, who spoke in Welsh.

Prince Charles spoke of his great pride in being Prince of Wales, saying: "This is a historic day for Wales.

HRH Prince Charles' speech in Welsh

"To you the 60 members of this assembly falls the honour of being pioneers."

The Queen was then presented with a bound volume of the Government of Wales Act.

Music played by harpists, including Elinor Bennett, the wife of Plaid Cymru President Dafydd Wigley, was included in the ceremony as well as an emphasis on young people.

Wyre Davies in Cardiff: A huge show of public support for the royals and the assembly

The ceremony continued with bilingual speeches from the assembly's First Secretary Alun Michael and the leader of the opposition Mr Wigley.

'Time of hope'

Mr Michael said: "This is a time of change and it is also a time of hope."

There was a "profound sense of history on these proceedings", he said.

But the low turn out in the assembly elections last month meant the assembly must still convince people.

The Queen opened the Assembly

The real test of the assembly would be whether it would improve the quality of life of the people of Wales, he said.

Mr Wigley echoed that when he said the assembly's first task would be to "work for the benefit of all the people of Wales".

He said: "The new national power house will create new confidence and add new dignity to Wales."

But he warned that no-one should underestimate the size of the task ahead.

The ceremony concluded with the presentation of a trophy crafted out of brass, steel, slate, coal and gold by two 18-year-olds which will be the equivalent of the assembly's mace.

Devolved budget

Mr Blair arrived in Wales later in the day to meet the assembly members who will run the principality's £8bn budget from July.

A musical celebration of Welsh culture at the cathedral service

The day began with the Queen attending a multi-faith ceremony at Llandaff Cathedral.

Several eggs were thrown at the Queen's car as she visited the cathedral, police said.

Later, the royal party went on an informal walk at Cardiff Castle, where hundreds of young people will stage a "Festival for the Future".