TEGUCIGALPA, Honduras -- Ousted Honduran President Manuel ``Mel'' Zelaya prepared to spend a second night holed up in the Brazilian embassy Tuesday as police fought running battles with his supporters and world leaders called for a peaceful solution to the dramatic standoff.

Defying arrest orders, Zelaya slipped into Honduras on Monday and took refuge at the diplomatic compound. As his followers surrounded the building, his rival and de facto President Roberto Micheletti imposed a curfew, shut down the airport and border crossings, and called on Brazil to hand Zelaya over on charges of treason and abuse of power.

Riot police moved in Tuesday morning, dispersing the crowds and detaining about 165 people on charges of vandalism and breaking curfew, police spokesman Orlin Cerrato said.

Venezuela's TeleSur and some local media reported that at least one person was killed and more than 300 people detained as a result of the action. However, police denied the claims, which could not be independently verified.

Zelaya's return thrusts the nation's three-month political crisis back in the spotlight as world leaders gather at the United Nations in New York, and Honduras is ramping up for Nov. 29 presidential elections.

Zelaya was ousted from Honduras at gunpoint on June 28 after he defied the supreme court and congress by pushing ahead with a referendum that would have allowed him to convene an assembly to rewrite the constitution.

Opponents feared he was taking cues from his ally Venezuelan President Hugo Chávez and was bent on extending his presidential term, which was due to end in January. Zelaya has denied those charges and insists the redrafting would not have begun until after he was out of office in January.

Zelaya, who was scheduled to speak at the U.N. on Wednesday, told The Associated Press that he has no plans to leave the safe haven of the embassy and invited Micheletti to join him there for talks.

But there was little indication that invitation would be accepted.

Micheletti ``has been firm in that Mr. Zelaya has to hand himself over to the law and that he is a fugitive from justice,'' Micheletti's press advisor Cesar Caceres told The Miami Herald. ``He also thinks it's unfortunate that the Brazilian embassy is interfering in Honduras' legal affairs.''

In New York, Brazilian President Luíz Inácio Lula da Silva told The Associated Press that Brazil was simply fulfilling its democratic duty by allowing Zelaya to enter the compound. Silva also asked Zelaya not to do anything that might provoke an invasion of the diplomatic mission.

Standing outside the embassy, in the upscale neighborhood of Palmira, police spokesman Cerrato said the compound was guarded by about 60 officers who were under clear orders not to cause a diplomatic stir.

``We respect the fact that this is a diplomatic zone,'' he said. ``Under no circumstances are we planning on entering the embassy.''

ELECTRICITY RESTORED

Despite reports that utilities and telephone lines to the embassy had been cut, a journalist inside the compound said only electricity had been shut off Monday night but was restored Tuesday. Even so, the entourage inside the compound was running low on drinking water and Zelaya was visibly fatigued by the ordeal, the reporter said.

In Nicaragua, Zelaya advisor Allan Fajardo said the risky move was needed to force the Micheletti to the table.

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