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Jamie Lynn Spears ... PREGNANT AT 16!

Wasn't she supposed to be the responsible Spears sister? News that Jamie Lynn, 16, is expecting a baby next summer has been met with widespread disbelief—including by Britney, 26, who a source says was "in shock" upon learning of the pregnancy only after it became public Dec. 18. The baby's father is Jamie Lynn's boyfriend Casey Aldridge of Liberty, Miss., who a Spears family source says is well-liked by her parents, Jamie and Lynne: "They adore him." (Casey was a fixture at Lynne and Jamie Lynn's Valencia, Calif., townhouse and a regular visitor on the set of Nickelodeon's Zoey 101.) Both families appear to be reeling—especially Lynne, whose recently announced mothering memoir is now "delayed indefinitely," according to a spokesperson for her publisher. "This could crush Lynne," says a close friend. "She has had so much trouble with Britney. Jamie Lynn has been her saving grace." Adds a relative of Casey's: "They had their whole lives ahead of them, and to be settled down with a baby so young ... but what are you going to do?" Before the news broke, Jamie Lynn gave an interview about her future plans. "It's all kind of open to whatever I feel like doing, I guess. Or whatever comes my way," she said. "I guess it will all fall into place."

Eva & Tony: FIGHTING SCANDAL

Her tale didn't spare the seamy details—and made headlines around the world: In an interview with gossip site X17online, a French model named Alexandra Paressant claims she had an affair with EVA LONGORIA's husband, NBA star TONY PARKER, after meeting him at his July 7 wedding. Longoria, 32, and Parker, 25, vehemently deny the claim. Parker's attorney, Stanton "Larry" Stein, says he plans to sue, stating, "Tony adamantly and unconditionally denies ever having laid eyes on this woman, let alone having had an affair with her."

Who exactly is Paressant? PEOPLE's reporting raises doubts about her credibility—and even her identity. At least one of the photos of herself Paressant provided to X17 as well as some of the images on her MySpace page have been confirmed to be pictures of other models. Paressant claims she modeled for Victoria's Secret, but the company says it never employed her. And three agents she says she worked with say they only spoke with her on the phone after she e-mailed them pictures. "Alexandra Paressant is a hoax," says Caroline Labelle, a booker for Major Management/Paris, who says the model evaded face-to-face meetings. "No one here has ever seen [her] on a runway or at a photo shoot."

This isn't the first time Paressant has been at the center of a scandal: In an interview with a British tabloid last summer, Paressant claimed she slept with Brazilian soccer player Ronaldinho. But Roberto Assis, Ronaldinho's brother and lawyer, says he never met her.

Reached on the phone, a woman who said she was Paressant refused to meet in person but stood by her story. "I want the world to know that Tony is not who he pretends to be," she said. Meanwhile, Longoria and Parker have stepped out to his Spurs games, shopping and church services in San Antonio. "They are perfectly happy," says a source close to them, "despite everything that's going on."

WHO WAS DIANA'S TRUE LOVE?

The PRINCESS DIANA inquest has revealed more than just details of her final days: On Dec. 13 and 18, two of Diana's best friends told a London court that she was still in love with heart surgeon HASNAT KHAN (whom she dated from 1995 to 1997)—not DODI FAYED. "Hasnat accepted her as Diana, rather than a princess," said Rosa Monckton. And even though Diana knew Dodi would give her a ring, Monckton says she told her it would "go firmly on ... my right hand." Lady Annabel Goldsmith testified that Diana said she was using the Dodi relationship "to make Hasnat Khan ... jealous." And added that Diana said she needed another marriage "like a rash on my face."

DODI FAYED OR HASNAT KHAN?

MATT'S SHAPE IN '08

Sexy man Matt Damon, 37, will do whatever it takes for a role, but in 2008 he'll push his body as never before. First, he'll work with trainer Robert Severiano to be lean and strong for Imperial Life in the Emerald City, which begins filming in early 2008, then go plump for his part in The Informant. "He plays a heavy-set older guy, so he'll stop training about halfway through the first movie so he's out of shape for the second."

HAYDEN'S ROMANCE RUMORS

"That's definitely the running joke," says Hayden's mom, Lesley Vogel. First Panettiere, 18, was linked to Heroes costar Milo Ventimiglia, then Gossip Girl's Chace Crawford. "She posed beside Ne-Yo [and] leaned over to him and said, 'Tomorrow it will be in the paper that we're dating.' [It] was!"

THE SHRINKING TARA REID

Party girl TARA REID made news recently with reports that she collapsed while out in Bali (her rep insists she fell during a photo shoot), but what's more disturbing are photos of the American Pie actress' slender frame. Reid, 32, who was reportedly hospitalized in October for undisclosed reasons, looked shockingly thin during the trip. A rep for the star insists that she is "100 percent healthy." A friend who's been in touch with Reid adds, "she lost weight in Canada because they were shooting [the horror film Vipers] where they had really bad food. She's gaining it back."

WHAT THE STARS ARE DOING FOR NEW YEAR'S 2008!

LAS VEGAS

VENUE: The Palms

HOST: Kanye West

At midnight fake snow and 3,000 balloons will drop in the Pearl Theater, where Kanye West is performing.

VENUE: 40/40 Club

HOSTS: Jay-Z and Beyoncé

Hip hop's power couple will fete the holiday, dancing on 24K gold and platinum floors with expected pals Pink and Mary J. Blige.

VENUE: Privé

HOST: Avril Lavigne

Glass-enclosed fireplaces and Pucci fabric sofas set the stage for Lil' Jon to run the turntables while Lavigne pops open a six-liter Dom Pérignon worth $15,000.

MIAMI

VENUE: The Shore Club

HOST: Ashlee Simpson

Eve will sing, and Simpson's beau, Fall Out Boy's Pete Wentz, will deejay.

VENUE: The Raleigh hotel

HOST: Mandy Moore

The covered pool becomes a dance floor at the Belvedere bash; at midnight 100 waiters will serve chocolate soufflés.

NEW YORK CITY

VENUE: Hotel Gansevoort

HOST: Kid Rock

While Carrie Underwood celebrates in Times Square, the trendy hotel will be party central for Kid and fake falling snow.

  • Contributors:
  • CONTRIBUTORS Mark Dagostino,
  • Rennie Dyball,
  • Lesley Messer,
  • Alyssa Shelasky,
  • Michelle Tauber,
  • Jennifer Wren,
  • With Bryan Alexander,
  • Karen Anhalt,
  • K.C. Baker,
  • David Caplan,
  • Pernilla Cedenheim,
  • Alexis Chiu,
  • Champ Clark,
  • Alicia Dennis,
  • Jennifer Garcia,
  • Mark Gr.