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By Ahmad Pathoni

DILI, April 8 (Reuters) - For tens of thousands of East Timorese who fled their homes last year when the tiny nation descended into chaos, the main hope from Monday's presidential election is that it will allow them to go home.

Outgoing President Xanana Gusmao has said that East Timor's presidential poll is a chance to show that his young nation is not a failed state, but the shadow of violence remains.

Supporters of rival candidates clashed during campaigning last week, injuring more than 30 people and prompting international troops to fire tear gas and warning shots.

"I want to return home but I'm still afraid," said Sofia Rofinus, a 38-year-old former teacher who has lived in a tent with her five-year old daughter and husband for almost a year.

At the camp in the capital, children were flying kites in the scorching sun, their hair unkempt and clothes shabby, while older people sat outside their tents to escape the heat inside.

About 150,000 people were driven from their homes last year when violence erupted after the government sacked 600 rebellious soldiers. Foreign troops had to be brought in to restore calm after dozens were killed.

Eight candidates are running in the poll, including interim Prime Minister Jose Ramos-Horta, a Nobel peace prize winner who spearheaded an overseas campaign for independence from Indonesia. If no one wins more than half the votes, there will be a run-off.

President Gusmao, an ally of Ramos-Horta, is not running for re-election but plans to seek the more hands-on post of prime minister in separate parliamentary elections later this year.

"We are ready for the elections. I believe this election will be free and fair," said Gusmao after a ceremony to hand over ballot boxes to officials in Dili, which was calm on Sunday.

FOREIGN TROOPS AND OBSERVERS

Gusmao has blamed election clashes on the Fretilin Party of ousted Prime Minister Mari Alkatiri, accusing its leaders of allowing supporters to provoke violence.

Fretilin's candidate, Francisco Guterres, is a front-runner in the poll, vying for support from just over half a million voters.

A U.N. official said organising a free and peaceful election was not an easy task for a fledgling nation ravaged by conflict. Previous votes have been organised by international agencies.

Around 3,000 international troops and police will go on patrol to safeguard the elections, while about 200 international observers are monitoring the voting.

Many hope the winner will unite a nation beset by regional rivalry, rebellious security forces and disillusionment among citizens five years after the joyous celebrations of independence.

East Timor's vote for independence from Indonesia in 1999 triggered a campaign of violence by pro-Jakarta militiamen, leaving about 1,000 dead and a trail of destruction.

The United Nations ran the country until 2002.

Despite considerable oil reserves, the former Portuguese colony has the lowest per-capita gross domestic product in the world, at only $400, according to the United Nations.

At the Don Bosco refugee camp, Rofinus, the displaced teacher, said food was scarce and people often had to make do with eating boiled papaya leaves and corn, instead of rice.

About 8,000 refugees remain at the camp in a school complex, from 16,000 at the height of the violence. More than 30,000 people live in several camps throughout the city.

"The government said if we still refuse to return, they won't give us food," Rofinus said. "But we're not asking for food. We want security."

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