Mark Knopfler and his adventurous British rock band Dire Straits dominated the nominations, announced yesterday, for the 28th annual Grammy Awards. The band's nominations included album of the year (for "Brothers in Arms"), record of the year and song of the year (both for "Money for Nothing"). The song, a scathing overview of the music industry, also earned Dire Straits a nomination in the rock group performance category and a shared song-writing nomination for Knopfler and Sting.

Knopfler, the band's guitarist and songwriter, had the highest number of individual nominations, with eight. Included were nominations as a producer and a musician on "Brothers in Arms" and "Money for Nothing," best engineer, best producer, best-engineered recording for "Brothers in Arms" and best country instrumental, with Chet Atkins, for "Cosmic Square Dance."

"We Are the World," the all-star effort that raised $44 million to combat famine in Africa, earned six nominations: top album and record, song of the year (for writers Lionel Richie and Michael Jackson), best performance by a pop duo or group, best recording for children (as performed by a group called Children of the World), and best long-form video.

Grammys are voted by the 5,000 members of the National Academy of Recording Arts and Sciences, for artistic and technical achievements. The three-hour awards show will be broadcast Feb. 25 on CBS from Los Angeles.

Other artists receiving multiple nominations yesterday were Atlanta Symphony Orchestra conductor and producer Robert E. Woods with seven, and producer David Foster with six. Five nominations each went to Phil Collins, Tina Turner and Sting, as well as classical conductor Robert Shaw, while former Eagle Don Henley and Huey Lewis received four each.

"Vocalese," an album by the jazz vocal group Manhattan Transfer, earned nine jazz category nominations for ensemble work, individual soloists and guest artists.

Collins, who recently returned to the studio for drumming duties with the long-lived British group Genesis, was nominated for album of the year ("No Jacket Required"), pop male vocal of the year, best short-form video, best pop performance by a duo or group (for his "Easy Lover" single, with Philip Bailey) and producer of the year.

Sting, the Police-man who launched a solo career with his jazz-influenced album "The Dream of the Blue Turtles," was nominated for best album, best jazz instrumental (for the title track), best song (with Knopfler), best video of more than 30 minutes (for an appearance with his old group, the Police), and best-engineered recording (for "The Dream of the Blue Turtles").

Turner, who won three Grammys last year to cap a smashing comeback, was nominated for best pop female vocal and best rock solo performance (for "We Don't Need Another Hero" and "One of the Living," both from the sound track to "Mad Max: Beyond Thunderdome"), best rock performance by a duo or group ("It's Only Love," with Bryan Adams) and two video nominations.

Among the notable absences:

*Madonna, whose "Like a Virgin" sold 6 million copies and produced four top-five singles: Her only nomination was for pop female vocal for "Crazy for You," from the sound track to "Vision Quest.

*"British glam-poppers Wham!, though "Careless Whisper" and "Wake Me Up Before You Go-Go" were named two of the top three singles of 1985 in a recent Billboard survey.

*Prince, whose neo-psychedelic "Around the World in a Day" album was a relative bust after the success of "Purple Rain."

*"Miami Vice": The bestselling and trend-setting television sound track earned nominations only for best pop instrumental and instrumental composition.

*Tears for Fears and Sade: The former got no nominations, the latter was limited to the best new artist category.

Bruce Springsteen's bitter anthem, "Born in the U.S.A.," was nominated for record of the year, though the album it came from was released in August 1984. It failed to win any Grammy award during its year of eligibility. Besides "We Are the World" and "Money for Nothing," its competition includes Don Henley's "Boys of Summer" and Huey Lewis and the News' "The Power of Love."

Album of the year nominations went to Collins, Sting, USA for Africa, Dire Straits and Whitney Houston for her eponymous debut. Best new artist nominees were the Norwegian group a-ha, Freddie Jackson, Katrina and the Waves, Julian Lennon and Sade. Houston, whose album has sold more than 2 million copies and who would have been the prohibitive favorite in this category, was disqualified because she had appeared on a pair of duet records in a previous eligibility year. Sade now becomes the front-runner, though Lennon could get the sentimental vote.

Nominated for song of the year were "Boys of Summer," "Everytime You Go Away," "I Want to Know What Love Is," "Money for Nothing" and "We Are the World." The song of the year award is to songwriters, while record of the year honors go to the performer.

Besides Sting and Dire Straits, other male pop vocal nominees were Glenn Frey for "The Heat Is On," Stevie Wonder for "Part-Time Lover," and Paul Young for "Everytime You Go Away." The best vocal duo and group category pits two anthemic choruses against each other, Foreigner with "I Want to Know What Love Is" and USA for Africa's "We Are the World."

Male rock performance nominees were Don Henley for "Boys of Summer," John Fogerty for "Centerfield," Bryan Adams for "Reckless," John Cougar Mellencamp for "Scarecrow" and Mick Jagger for "Just Another Night" (the Rolling Stones, incidentally, have never won a Grammy).

The front-runners in the category of best music video of 30 minutes or less were two charity events, Band Aid's "Do They Know It's Christmas?" and "We Are the World -- The Video Event."

Besides the Grammys, NARAS trustees will present special honors to Benny Goodman, Andres Segovia and the Rolling Stones. A special Grammy will be presented posthumously to George and Ira Gershwin.

A number of Washingtonians earned Grammy nominations: guitarist Roy Buchanan, in the best traditional blues category; the Smithsonian's "American Popular Song" set, for best album notes (James R. Morris, J.R. Taylor and Dwight Bowers); and the Smithsonian set again, for best historical package (J.R. Taylor producing).

There were 71 categories this year, up from 67 last year. Nominees were announced by officials of the National Academy of Recording Arts and Sciences at the Beverly Hills Hilton Hotel yesterday. NARAS voters include singers, musicians, producers, songwriters, composers and engineers. Individuals, but not companies, can be members.