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I wouldn't call 1992 a great year for costume in films. The science fiction genre was particularly grim -- I think Alien 3 was designed by mail order from Army surplus outlets. One bright spot was the inspirational scene in Batman Returns where Catwoman ransacks her apartment to create her "new look" by ripping apart an old vinyl raincoat. I'm sure that evoked a sympathetic response from many of us with limited budgets!
For this year's Oscar, my vote goes to Bram Stoker's Dracula. Whatever the film's flaws (yes, there are some, but nobody can agree on what they are), director Francis Ford Coppola's production approach of integrating film technique, set, and costume into a carefully crafted artistic vision is certainly unique in modern filmmaking. Coppola initially wanted the costumes to be the film sets, and although he found it necessary to modify this idea, his collaboration with designer Eiko Ishioka has resulted in some gorgeous and original costume creations. (Check out the amazing book Coppola and Eiko on Bram Stoker's Dracula, if you haven't already done so!).
Bram Stoker's Dracula won the 1992 Oscar for Costume Design (as well as those for Makeup and Sound Effects), so there is some justice. But to cut to the really important part of the Academy Awards ceremony, the evening did have some notable fashion entertainment value. Andie McDowell in her beige flapper ensemble was a leading candidate for both best and worst dressed, depending on whom you asked. Robert Downey, Jr., was probably the most interestingly-dressed mail, kind of "neo-Edwardian grunge" in a black velvet jacket. Some people I polled actually liked Natalie Cole's red cocoon wrap, but most of the people at the party I attended thought she looked like a refugee from Attack of the Killer Tomatoes. Catherine Deneuve was the biggest disappointment: after all those gorgeous 1930-1950 clothes she wore in Indochine, her Oscar outfit with its neckline of pink ostrich feathers was rather tacky. We ate, we drank, we made rude comments: what else are the Oscars all about?