Get Breaking Celebrity News Every Day PEOPLE.COM

ROMANCE FOR REESE?
From costars to something more? Reese Witherspoon gets close to Jake Gyllenhaal

Five months after announcing her split from husband Ryan Phillippe, Reese Witherspoon seems to be wading back into the dating pool. The object of her affection? Jake Gyllenhaal, her costar in the upcoming CIA thriller Rendition. Although the two have been careful to avoid the spotlight, they were spotted March 23 dining with two other couples at L.A.'s Il Sole. "They were cuddling," says an observer. "It looked very playful." And now friends of both say the relationship extends beyond the occasional dinner. "In the last month, they've been spending a lot more time together," says a source close to Gyllenhaal, adding that the actor has even met up with Witherspoon, 31, and her kids—daughter Ava, 7, and son Deacon, 3—in New York City. At 26, he is five years her junior, but "Jake really likes her and isn't at all concerned that she has two kids." (Gyllenhaal's rep had no comment; her rep did not return calls.)

Still, Witherspoon isn't rushing into another high-profile Hollywood relationship, says a source close to the Oscar winner. "[Reese] is still very, very hurt by Ryan and it will take a long time to get over that," the source explains. "[But she and Jake] have a mutual interest. They are taking it slow and getting to know each other."

One common point may be their homebody lifestyles. Family-first Witherspoon routinely picks up her kids from school and takes Ava for mommy-and-me manicures. As for Gyllenhaal—who's uncle to sister Maggie's 6-month-old daughter Ramona and godfather to Heath Ledger's 17-month-old Matilda—he's "very into kids," says a source. Although he dated nightlife-loving Kirsten Dunst for nearly two years, "Jake has never been about staying out late partying," the insider adds. "This is what he wants."

BRITNEY SPEARS: MOVING ON

Britney Spears and Kevin Federline have officially put their chaotic marriage behind them. On March 29 the two, who split last November, reached a divorce settlement after weeks of intense negotiations between Federline's lawyer Mark Vincent Kaplan and Spears's attorney Laura Wasser. (No details of the agreement were released, but a source says Federline will retain custody of Sean Preston, 19 months, and Jayden James, 7 months, for the immediate future.) Later that evening, Spears was clearly in the mood to celebrate as she joined family and friends at L.A. hot spot Bridge for her sister Jamie Lynn's 16th-birthday party. "She looked very happy," says a witness. With Federline still on daddy duty, Spears hit Vegas March 31 for a quick shopping trip and dinner with pals at Tao. Back in L.A. the next day, a still-beaming Spears donned a Lakers jersey and cap for a home game. Says an onlooker: "She looked good!"

MAKING THE SCENE, BRITNEY'S ONE GLAD HATTER

FEB. 28
MARCH 25
MARCH 29
APRIL 1
APRIL 2

COURTNEY LOVE'S SHOCKING SLIMDOWN

There's a lot less of Courtney Love to love. The singer, who recently unveiled a startlingly slim new figure while in Maui with daughter Frances Bean, has dropped 44 lbs. by "doing a lot of yoga," says her rep, adding that Love is also trying herbal body wraps, sticking to a macrobiotic diet and lots of fish, drinking Isopure protein shakes and, yes, avoiding alcohol. "She's sober and healthy," says a source. "She's worked hard to get to this point." Love's dieting days aren't over yet. The singer—who's recording a new album—has "maybe 11 more [pounds] to go," she said on her blog March 29. "[Then] I'll fit in that damned couture."

SANJAYA: IDOL'S HAIR APPARENT

Another week, another wacky hairstyle for the ever-polarizing Sanjaya Malakar. How should he top that flat-ironed flip? Scoop offers some suggestions:
THE DON KING
THE DONALD
THE RACHEL
THE BRITNEY

OFF CAMERA
Haley Scarnato—and her legs—have an international cheering section. Her fiancé, Bobby Krudwig, tapes every show, then mails it to his brother who's stationed in Iraq.... The usually curmudgeonly Simon Cowell spotted a sign that read, "Kiss me, Simon. It's my birthday." He summoned the (very pretty) fan over and gave her a peck on the cheek as the crowd cheered.... Also in the audience: Paula Abdul's dad, Harry.

Shandi's Swan Song

Former Miss USA Shandi Finnessey lost her battle for the DWTS crown when she and partner Brian Fortuna (a Dancing first-timer) were voted off April 3. "I wasn't surprised," says Finnessey. "I think we had the smallest fan base." Still, she says in upbeat pageant fashion, "I'd do it all over again!"

BROOKE GOES ACHY BREAKY

Billy Ray Cyrus has found himself a new partner—off the dance floor. The singer turned actor tells Scoop Brooke Shields will play his late wife in the April 27 episode of the Disney Channel's Hannah Montana (which stars his real-life daughter Miley). "She's my wife; how crazy is that?" he says of Shields, who appears in flashbacks. "Gosh, she's incredible. And so nice to everyone." What should viewers expect? "There are going to be a lot of wet eyes out there."

HEATHER'S DOC MAKES A HOUSE CALL

How'd Heather Mills pull off the jive's signature flicks and kicks? With the help of a new semiflexible prosthetic leg and the support of a special friend, Dr. Jan Ertl, who performed an amputation revision surgery on Mills last year and jetted in from Sacramento to see the April 2 performance. "She was fantastic. Incredible," he gushes. "It proves to everybody with an amputation that they don't have to feel incomplete."

BALLROOM BANTER
Joey Fatone wowed the judges with his Star Wars tango—but how did it sit with the original Jedi master? "I liked Princess Leia!" writer-director George Lucas says of Fatone's sexy partner Kym Johnson. Still, when it comes to gold bikinis, "nobody can beat Carrie Fisher," he told Scoop at the 2007 Toyota Pro/Celebrity Race.... Audience members competed in their own dance competition for guest judge Ian Ziering. The former 90210-er, however, spent most of the time chatting with a fetching blonde and brunette.... When a fan admitted, "I love to Achy Breaky," Billy Ray Cyrus obligingly led her in a hip-shaking line dance.

Q + A

ALL GROWN UP
Amber Tamblyn leaves Joan of Arcadia behind for her new role as a troubled teen mom

She's done talking to God on TV. But while shooting her next film, Stephanie Daley—in which she plays a girl accused of killing her infant—Amber Tamblyn, 23, kept in close contact with the spirit world. She shares her ghost stories with PEOPLE's Kim Peiffer.

You lived in an abandoned house while filming Daley up in New York's Catskills?
Yes! It was huge and lonely. The attic was literally nailed shut and no one was allowed up there. All very dramatic.

How'd you keep from going crazy?
I drank a lot of Maker's Mark! And I played pool with the ghosts. I told them I was always stripes, they were solids—no ifs, ands or buts. They didn't argue. Then [costar] Tilda Swinton did a ritual to cleanse the house.

This movie is awfully dark. Worried about alienating your fans from Arcadia or Sisterhood of the Traveling Pants?
No! They're not 9-year-olds! These are teenage girls.

Speaking of Pants, do you keep in touch with America Ferrera?
We just spent St. Paddy's Day in New York. Her schedule is crazy. But she's having a great time.

We never hear of you out at clubs. What's an average Friday night for you?
Never average. Next week I'm going to see Margaret Cho at a burlesque club. Some nights I'll go to a drum 'n' bass social. I'm just not into the Hollywood scenester thing. I [don't like] swimming in the same bowl.

Dating anyone?
Yes, a screenplay writer. It's been about five months. And that is absolutely all I'm going to say!

Can't get enough Idol? Visit PEOPLE.COM/IDOL for behind-the-scenes videos, daily updates and news

Get the latest news and gossip from Dancing with the Stars at PEOPLE.COM/DANCING

  • Contributors:
  • CONTRIBUTORS Molly Lopez,
  • Kim Peiffer,
  • Ryan Pienciak,
  • Ashley Williams,
  • With Reagan Alexander,
  • Paul Chi,
  • Jed Dreben,
  • Jen Garcia,
  • Mark Gray,
  • Julie Jordan,
  • Elizabeth Leonard,
  • Tiffany McGee,
  • Lycia Naff,
  • Pete Norman,
  • Gail Nussbaum,
  • Monica Rizzo,
  • Frank Swertlow.
This week's cover

On Newsstands Now!

Saved by the Bell Reunion

The hookups, the meltdowns, the memoires

The case reveals what was really going on what they think of each other now!

Get 4 FREE PREVIEW Issues! Click here now