Continued from page 4

Falling Apart

Thursday July 26, 2007 12:00 PM EDT

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July 2: While still in treatment, Lohan celebrated a low-key birthday in Malibu with mom Dina and sister Ali.

Kevin Mazur / WireImage

But the mood changed later that night when Lohan arrived at a pal's gathering. There, at least one person protested Lohan's partying – her assistant Tarin Graham. The two allegedly argued, and Graham declared she was quitting. Graham then apparently called her mother to pick her up, and Lohan gave chase.

What happened next may finally help Lohan turn a corner. "Forever people were talking about her wild and crazy ways, but she was still booking projects and making movies," says a friend. With her life in ruins, "she's getting scared." Others worry it may be too late. Lohan's party buddies "are not friends," says a close source. "They are enemies. She's got to realize that and walk away. If she doesn't, she could be the next Anna Nicole Smith. That's what I'm afraid of."

• By Karen S. Schneider. Lorenzo Benet, Howard Breuer, Jennifer Garcia, Ken Lee, Mary Margaret, Eunice Oh and Frank Swertlow in Los Angeles, Mark Gray in Las Vegas, Mark Dagostino, Diane Herbst, Tiffany McGee, Lesley Messer and Jeffrey Slonim in New York City and Linda Marx in Miami