President-elect Barack Obama told a massive crowd Sunday that America faces great challenges that will take time to overcome, and will "test the resolve of the nation.

"I won't pretend that meeting any one of these challenges will be easy," said Obama, referring to a worldwide economic plague, two overseas wars and mounting environmental woes.

Still, Obama told the crowd of about 250,000 -- who gathered at the National Mall for a pre-inauguration party Sunday afternoon -- that a unified country will be able to overcome even the greatest problems.

"There is no doubt that our road will be long, that our climb will be steep," said Obama, who will be sworn in as president on Tuesday.

"I stand here today as hopeful as ever that the United States of America will prevail," he said, adding that he has "a faith that anything is possible in America."

Obama also told the American people that "yours are the voices I will take with me everyday when I walk into that Oval Office."

Though the U.S. is facing critical economic problems such as a crumbling financial sector and a staggering national deficit, Obama said the nation's character has always been judged "by the right we do when the moment is hard.

"I ask you to help reveal that character once more."

We Are One

The speech was made at the foot of the Lincoln Memorial during the "We Are One" concert, which is part of a three-day, pre-inauguration party in Washington.

Along with speeches by Hollywood talent like Tom Hanks and Marisa Tomei, musical acts Bruce Springsteen, John Legend and John Mellencamp rocked the National Mall under cloudy skies.

Clearly, the concert -- which takes place a day before Martin Luther King Day Jr. Day -- wasn't just an outdoor spectacle, and each of the featured performances celebrated themes such as pride, hope and the determination of American society.

During a brief address to the massive throng of spectators, vice president-elect Joe Biden praised the work of America's founders and said the country will have to work hard in order to live up to those expectations.

"In my family, we were taught to live our faith and to treasure our family," said Biden, paying tribute to America's working families.

"We learned the dignity of work, and were told that anyone could make it if they were given a fair chance.

"That's how I came to believe, at the very core of my being, that work is more than a paycheque. It's about dignity. It's about respect. It's about whether you can look your child in the eye and say, 'honey, it's going to be all right.'"

Following Biden's remarks, Indiana-bred rocker John Mellencamp played "Pink Houses," which is an ode to middle class America.

Pre-inaugural festivities

Obama will take the oath of office at a ceremony on Tuesday, and he has a busy weekend of events to mark the occasion.

Just before 10 a.m. Sunday, Obama and Vice President-elect Joe Biden visited Arlington National Ceremony to lay a wreath at the Tomb of the Unknowns.

Later on Sunday evening, a crowd of at least 500,000 are expected to crowd into the National Mall to hear performances from U2, Beyonce and Usher.

Obama, Biden and their families arrived in Washington on Saturday after a train ride from Philadelphia that followed Abraham Lincoln's journey 150 years ago.

With files from The Associated Press