Jennifer Hudson on Life in the 'Spotlight'

Oct. 17, 2008— -- The first time Jennifer Hudson sang in public she was so nervous she squeezed her eyes shut until the song finished. Today, the former American Idol finalist and Academy Award-winning actress still gets awestruck when she thinks about her career.

"I've waited my whole life for this moment and this time and it's finally, finally here," she told "Nightline."

Her debut album, "Spotlight," released just last week, debuted at No. 2 on the top 200 albums list. Hudson hopes the album will give people a better picture of who she is as a singer and as a person.

"I think it's like a new beginning," Hudson said. "It's a great introduction to me as an artist and as a vocalist and it separates me from the box of just being a big ballad singer."

Born in Chicago, Hudson's first experience with singing occurred in her Baptist church, where she discovered her passion for singing, as much as performing initially scared her.

"I always had stage fright," Hudson said. "I always wanted to sing for everything until the time came to sing. Once I got to that point, I'd think, 'Why did I do this to myself.'"

But Hudson kept singing. She trained and performed throughout her childhood and, at 21, joined the cast of a Disney cruise ship as a featured vocalist.

While performing on the cruise, Hudson made a decision that changed her life: to audition for "American Idol."

She made the initial cut and, although she received the support of millions of viewers while on the show, she ultimately failed to win.

Though Fantasia Barrino won "American Idol" that season, Hudson was able to beat out nearly 800 other actresses for a role in the movie version of the musical "Dreamgirls." Acting and singing opposite Beyonce Knowles, Hudson won a Best Supporting Actress Oscar for her portrayal of Effie White, the role made famous by Jennifer Holiday on Broadway.

Hudson's Cinderella story doesn't end there. Earlier this year, Hudson played Carrie Bradshaw's assistant in the film version of the HBO series "Sex and the City." While she can be heard on her new album, with the single "Spotlight" in heavy rotation on radio, she also can be seen in the film "The Secret Life of Bees" opposite Queen Latifah, Alicia Keys and Dakota Fanning.

But it's not just movies and music for Hudson. Her boyfriend, David Otunga, recently proposed to Hudson on her 27th birthday.