Pre-Grammy gala celebrates Whitney Houston's life (AP) - It was a surreal scene: Whitney Houston had died at the Beverly Hilton, and hours later and a few floors below, her life was being celebrated at the event where her career was launched. On Saturday night, Davis - Houston's mentor, producer, champion and longtime friend - memorialized her at his pre-Grammy gala, held downstairs in the same hotel where her body was being examined by coroner's officials. Ray Davies and Elvis Costello took to the stage to perform as Los Angeles county coroner's Capt. John Kades arrived at the hotel. Alicia Keys arrived earlier and embraced Davis as he prepared for the show under extreme duress. With celebrities including Quincy Jones, Tony Bennett, Dr. Dre, Mary J. Blige and Jennifer Hudson in attendance, a somber Davis, reading from a sheet of paper, said: "I am personally devastated by the loss of someone who has meant so much to me. Davis introduced Houston, a young woman with a scintillating voice, more than two decades ago at his annual pre-Grammy soiree, Bennett, the evening's first performer, recounted other recent big-name deaths in the music industry. "First it was Michael Jackson, then Amy Winehouse, now the magnificent Whitney Houston," he said. Let's legalize drugs, like Amsterdam. It's a very sane city now. He added that Houston was "the greatest singer I've ever heard in my life." But Grammy president and CEO Neil Portnow, who called Houston a friend, said "canceling the party was never an option." Diddy gave his own memories of Houston, recalling her incredible smile and positive spirit. He said when he heard she died, "I was in a state of shock." "Whitney Houston, simply put, had the greatest voice of the world," he told the crowd. Hearing her sing was like listening to magic. ... We lost an angel, and anytime we think of Whitney, we have to remember the positivity she gave us, when she performed, she performed 5,000 percent. She wasn't a hater, she was a congratulator. R&B singers Monica and Brandy, heavily influenced by Houston, were supposed to perform together at the event, but Davis said the singers were "too heart-stricken." I know the role Whitney played in their lives. Thank you for staying," he said. We said hello to Whitney at the Clive Davis (gala), it may be appropriate we're saying our first goodbyes to Whitney at a Clive Davis event," Jam said. Keys called the evening a "very special night" and, after singing a line from Houston's "I Wanna Dance With Somebody," noted how the late diva had inspired her. "You think about how this person touched you," she said. (Then) you form a friendship, a sisterhood, a bond. You see how incredible they really are. ... She was a sister to me. Moments later, she launched into her hit "No One," saying: "This one's for her. Let's sing her into heaven. AP writers Caitlin King and Ryan Pearson contributed to this report. Follow him at http://www.twitter.com/musicmesfi