<P> Below is a synopsis based on the original 1892 libretto by Marius Petipa . The story varies from production to production, though most follow the basic outline . The names of the characters also vary . In the original E.T.A. Hoffmann story, the young heroine is called Marie Stahlbaum and Clara (Klärchen) is her doll's name . In the adaptation by Dumas on which Petipa based his libretto, her name is Marie Silberhaus . In still other productions, such as Baryshnikov's, Clara is Clara Stahlbaum rather than Clara Silberhaus . </P> <P> Scene 1: The Stahlbaum Home </P> <P> It is Christmas Eve . Family and friends have gathered in the parlor to decorate the beautiful Christmas tree in preparation for the party . Once the tree is finished, the children are sent for . They stand in awe of the tree sparkling with candles and decorations . </P> <P> The party begins . A march is played . Presents are given out to the children . Suddenly, as the owl - topped grandmother clock strikes eight, a mysterious figure enters the room . It is Drosselmeyer, a local councilman, magician, and Clara's godfather . He is also a talented toymaker who has brought with him gifts for the children, including four lifelike dolls who dance to the delight of all . He then has them put away for safekeeping . </P>

Where does act i of the nutcracker take place