This week on the cover of PEOPLE, the magazine takes a look at the good, bad and ugly -- clothing, that is -- with PEOPLE's annual Best and Worst Dressed issue. On the plus side, there are the daredevils who get double bonus points for pushing the envelope, starting with "Almost Famous" actress Kate Hudson. "She has revolutionized the way a Hollywood ingenue dresses," says one PEOPLE fashion panelist. With her long, lean lines and innate confidence, Heather Graham also makes the most of whatever she wears. Sarah Jessica Parker, meanwhile, "is an influential trendsetter, more so than any other celeb right now," says PEOPLE's West Coast style editor Steven Cojocaru. For Russell Crowe, whether it's a flannel shirt and jeans or an alternative tux, the "Gladiator" star wears his clothes with attitude, says PEOPLE's panel. Likewise, Angelina Jolie: "When she dresses up, she's an absolute goddess," says Cojocaru. "And with the Billy Bob tattoo, she has that exciting good-girl, bad-girl thing going on." Other winners: Halle Berry, who has flawless skin and "knows what to wear for any event," notes Cojocaru, who says of Zhang Ziyi (of "Rush Hour 2"), "She's not afraid of flash."