(Repeats, without changes, to screen subscribers) (Adds vote counting starting, indications on poll, new Ramos-Horta quotes, details)

By Ahmad Pathoni

DILI, April 9 (Reuters) - The counting of votes for a new president began in East Timor on Monday after a poll that many hope can help end deep divisions and instability in one of the world's youngest and poorest nations.

Over half a million people were eligible to vote in the election, which outgoing President Xanana Gusmao described as a chance to demonstrate his nation is no failed state.

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.

"This election is important for the country's future. I hope the new president will lift us out of the crisis," said Rogerio dos Santos, a 30-year-old farmer, before casting his ballot at a polling station in an elementary school.

The turnout appeared to be high and, although official results are not due until next week, an election commission spokesman said preliminary results could emerge on Tuesday.

Eight candidates are running, including 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 vote, a run-off will be held, a scenario some analysts see as likely.

The election commission spokesman told a news conference that phone text messages from poll officials put Ramos-Horta, former guerrilla fighter and Fretilin Party candidate Francisco Guterres and the Democratic Party's Fernando de Araujo ahead.

"There is some consistency in the numbers," he said, declining to say who was receiving the most votes.

Dili, the capital, was calm during the day, although residents said that overnight two soldiers they described as drunk had fired shots while stopping traffic. No one was hurt in the incident, they said.

Campaigns have focused on how to reunite East Timorese, split by an east-west divide that erupted into bloodshed last May after the sacking of 600 mutinous troops from the western region.

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 a separate parliamentary election later this year.

"MARGINAL INCIDENTS"

Ramos-Horta appeared upbeat in comments on the elections he made to Reuters at a Dili hotel.

"So far I think very positive, enormous participation of the people. The incidents are marginal," he said.

Around 3,000 international troops and police are patrolling during the elections, while about 200 international observers monitored the voting.

"There have been a few problems in the districts but it's completely normal in any election," said Javier Pomes Ruiz of the European Union's monitoring mission.

Some of the 700 polling stations are so remote ballot papers had to be delivered on horses.

Gusmao has blamed last week's clashes on the Fretilin Party of ousted Prime Minister Mari Alkatiri, accusing its leaders of allowing supporters to provoke violence. The party, the country's ruling political machine, has denied the charges.

Pro-Jakarta militiamen went on a violent rampage following a 1999 vote for independence, killing about 1,000 people and destroying much of the territory's infrastructure.

In the chaos after the mutiny by some troops last May, more than 30 people were killed and 100,000 fled their homes, until the government asked foreign troops to quell the unrest.

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