GIVEN encouragement and the chance to prove themselves, the handicapped and the aged can show they are as good as anyone at putting on a show and enjoying themselves. A recent event, held at St Margaret Church Hall in Happy Valley, proved this amply. Twenty-five mentally retarded children, physically handicapped people and some elderly people gathered for a competition titled ''Talent Quest''. The participants came from five centres around the territory. The competition was the last function in the ''Hearts 2 Hearts 1994'' project, organised by the St Louis Youth Club of St Louis School and the Social Service Society of St Paul's Secondary School. The event gave participants a chance to give a stage performance before an audience, show their talent and gain self-confidence. The show also helped to raise awareness of the plight of the less fortunate, and their need for attention and care. Simon Lee Kwan-lap, head of the ''Hearts 2 Hearts 1994'' organising committee, said the project was aimed chiefly to help a school for mentally retarded children, the Sham Shui Natives' Association Lau Pun Cheung School. ''We have had five functions in all, an Orientation Day for workers, an Orientation Day for children, a Games Day at a day-camp site, a visit to a food factory, and the Talent Quest,'' Kwan-lap said. ''What we did was to give the less fortunate a special Easter holiday experience that they would remember with pleasure, and also help them realise that they can do what normal people can do.'' Kwan-lap, a Form Six student at St Louis School, believed events like these would give young handicapped people confidence ''to do things'' in later life. Of the five events, the Talent Quest was the ''special one'', as it was open not only to students of Sham Shui Natives' Association Lau Pun Cheung School, but also to other handicapped and elderly people from around the territory. The participants entertained the audience with songs, dancing and a lion dance. Students of the two schools organising the project also contributed with song and drama items. Several lucky draws were also held during the show, with prizes donated by the Social Service Society of St Paul's Secondary School and students of St Louis School. Competition was keen, but it was the lion dance that won the day. The champion team, the Aberdeen Rehabilitation Centre, also won the Most Creative prize. The second prize went to Wong Po-loi of the Kai Chi Children Centre. Po-loi sang Leon Lai's hit song, Summer Loving . The third prize went to Cheung Ming-hon of Margaret Trench Red Cross School for her performance of Only Want to Follow You in a Lifetime . The team from the St James' Settlement Multi-Service Centre for the Elderly, won the Most Co-operative prize with a splendid shadow dance. The winners received a trophy each, as well as $1,000, $500 and $300 to the first, second and third placed respectively. The Most Co-operative and Most Creative teams each received a special gift.