Spielberg and actor Richard Dreyfuss re-convened to work on a film about UFOs, which became Close Encounters of the Third Kind (1977).One of the rare films both written and directed by Spielberg, Close Encounters was a critical and box office hit, giving Spielberg his first Best Director nomination from the Academy as well as earning six other Academy Awards nominations. It won Oscars in two categories (Cinematography, Vilmos Zsigmond, and a Special Achievement Award for Sound Effects Editing, Frank E. Warner).This second blockbuster helped to secure Spielberg's rise.
With the role of the network reduced to a core of functionality, it became possible to exchange traffic with other network independently from their detailed characteristics, thereby solving Kahn's initial problem. DARPA agreed to fund development of prototype software, and after several years of work, the first demonstration of a gateway between the Packet Radio network in the SF Bay area and the ARPANET was conducted by the Stanford Research Institute. On November 22, 1977 a three network demonstration was conducted including the ARPANET, the SRI's Packet Radio Van on the Packet Radio Network and the Atlantic Packet Satellite network.