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Kate Walsh's
SURPRISE SPLIT

Kate Walsh and her husband of just over a year, Alex Young, were all smiles as they arrived for a night of dinner and dancing at Tao Las Vegas Nov. 8. When asked how married life was treating her, Walsh, 41, replied without hesitation: "It's been fantastic!"

One month later, that fantasy came to a stunning halt. On Dec. 9, Young, 37, an executive at 20th Century Fox, filed for divorce from the Private Practice star, claiming they separated exactly two weeks after that romantic Vegas evening.

"The couple remain on friendly terms," Walsh's rep said in a statement, but no one's saying why the whirlwind romance went bust.

Introduced to Walsh in February 2007, Young popped the question in May and they married Sept. 1 in front of many of her Grey's Anatomy costars. So it was fitting that on Dec. 12 and 13, Walsh was back at work on the Grey's set, filming crossover episodes set to air in February—and perhaps leaning on those very same costars for support.

Tara Reid
CHECKS INTO REHAB

On Dec. 9 party girl Tara Reid, 33, checked into Malibu's Promises Treatment Center, her rep confirmed. The reason was not revealed, but a source tells Scoop, "Tara has a problem with alcohol. It's been at the root of much discomfort between herself and her family and friends." In October Reid told PEOPLE she's a "social drinker," but denied using drugs. "I've done enough [partying] for a lifetime," she said. Reid's pals remain supportive. "They always have and continue to care about her," says the source.

THE People POLL

Should Paula Abdul Stay On Idol?

On Dec. 8 Abdul, 46, blasted American Idol for allowing known stalker Paula Goodspeed—who died in an apparent suicide last month outside Abdul's home—to audition. As she ponders her future with Idol, People.com readers weigh in:
61% YES
39% NO

MACAULAY CULKIN
TRAGIC LOSS

Macaulay Culkin's sister Dakota, 29—who died Dec. 10 after being hit by a car in West L.A.—will be remembered as "hilarious, witty and down-to-earth," says friend Andrea Poe. The second eldest of the seven siblings (below right, in 1995) had recently moved from New York City to L.A. to pursue a career in film production. Says former colleague Dana Schroeder: "She was a real sweetheart, a really good kid."

NEW YEAR'S EVE 2008
STAR PARTIES

MIAMI
FONTAINEBLEAU
As if Adam Levine's poolside performance isn't enough, the hotel boasts a second soiree at LIV nightclub, hosted by Diddy. Sip Ciroc martinis with edible gold and keep an eye out for Chace Crawford.

MANSION
Lindsay Lohan hosts the SoBe Life Water party, while Samantha Ronson deejays.

LAS VEGAS
LAVO
Fergie, who will have taped a segment for Dick Clark's New Year's Rockin' Eve, will actually perform at the Palazzo's bash as fiancé Josh Duhamel looks on.

PURE
Ashlee Simpson-Wentz and Pete Wentz leave baby Bronx at home to host the countdown and watch the fireworks over the Strip.

L.A.
BESO
Eva Longoria Parker rings in 2009 at her restaurant.

NEW YORK
MARQUEE
As Taylor Swift and the Bros. appear live from Times Square (awkward!), Mario Lopez hosts at this spot a few subway stops from 42nd Street.

SURPRISE FRIEND
Matthew Perry, 39, and Twilight star Elizabeth Reaser, 33, chatted with pals in a booth at Guy's lounge in West Hollywood on Dec. 13 and according to an onlooker, "They stole cute glances at each other." New romance? One source claims the actors are "just friends," but their reps had no comment.

RUMOR PATROL

Are Hayden & Milo Still Together?

No one's saying they've split, but the Heroes costars have rarely been seen together in weeks—and Panettiere was spotted with Jesse McCartney, 21, at L.A.'s Apple Lounge on Dec. 2 and Dec. 9. Reps are keeping mum.

Insider

HOLIDAY CHEERS

Hollywood kicked back, relaxed and enjoyed some holiday spirit for a good cause—Clothes Off Our Back and Feeding America—at the Pepsi Holiday House in Los Angeles Dec. 11-13. Guests like Vanessa Minnillo were greeted by toy soldiers and ventured into a life-size gingerbread house. Lauren Conrad and Lo Bosworth posed with Santa and the Kardashian sisters snuggled up at the fire pit eating pizza!

THE MADDENS DO SHOES

Joel Madden left daughter Harlow at home, but he was still with family—the singer was joined by brothers Benji, Josh and partner Tal Cooperman to launch their collaborative baby—the K-DCMA shoe line. The guys celebrated Dec. 13 at their flagship store with Nicole Richie and Cooperman's ex Audrina Patridge. Josh deejayed while guests watched skateboarders on the indoor ramp.

FAST TAKES

• 12/11, L.A.: Nicky Hilton and Jaime King sang "Happy Birthday" to Lindsay Price (who turned 32 on Dec. 6) at the Hornitos Midnight in Agave party. • 12/12, L.A.: Topher Grace, Steven Spielberg, Tyrese Gibson and Jordana Brewster (above) hit Transformers director Michael Bay's Dewar's-hosted holiday bash. • 12/13, Tenn.: Taylor Swift celebrated her 19th birthday at home with 40 friends and family—the country darling entertained guests with a homemade video, a Ping-Pong tournament (her manager won but she got to the semis!) and s'mores.

  • Contributors:
  • CONTRIBUTORS Mark Dagostino,
  • Jennifer Garcia,
  • Marisa Laudadio,
  • Mary Margaret,
  • Kristen Mascia,
  • Lesley Messer,
  • With Eileen Finan,
  • Mark Gray,
  • Lisa Ingrassia,
  • Amy Elisa Keith,
  • Ken Lee,
  • Brett Malec,
  • Gail Nussbaum,
  • Jenny Sundel,
  • Christina Tapper.