The Greek capital pulled out all the stops this year to celebrate the Christmas season, recreating a fairy tale town complete with a giant Christmas tree, a village full of candy, carousels and a lifesize dollhouse. Children sang carols and crowds clapped and cheered as the Christmas tree was lit in the capital's main square. ''As we light this tree we will send a message of peace, friendship and brotherhood to all the world,'' said Athens Mayor Dora Bakoyannis as the tree illuninated the square. A lifesife fairy tale village was constructed around the tree; the wooden houses filled with baskets of colorful toys, chocolates and candy for the public. Performers dressed as familiar childrens book characters such as Alice in Wonderland, the Tin Soldier and the little drummer boy performed inside a giant dollhouse, while scores of young and old lined up for a ride on the carousel. Hundreds of decorations and lights dressed the city, even architectural sites, in one of Athens most colorful Christmas dressings in years.