Just a quick refresher: early on Wednesday, the story broke that Heigl had dropped out of contract negotiations with the Grey’s producers, with a “source” stating that she was “disappointed and hurt that Touchstone doesn’t value her as much as her other co-stars.” By later in the day, Touchstone had released a rebuttal of its own: “We have a long-term contract to ensure she’ll be with the show for several years to come … we recently approached Katherine with an offer to raise her compensation significantly above the terms of her current contract. We were surprised to see this gesture reported negatively in the press.”

So can we be done with this now? No, no we cannot. Heigl struck back yesterday, releasing the following statement: “I am embarrassed that this has become a public matter and disappointed that Touchstone felt it necessary to divulge private employment information. I had hoped I would be able to deal with this issue confidentially with my bosses. I dropped out of the renegotiation simply because I wanted to treat myself with the respect I was not getting from them. No matter how unhappy I am about their decision to respond to this publicly, I continue to be passionate about and committed to this character.”

That’s nice. Stay tuned for next week, when Ellen Pompeo goes on strike because her new contract specifically stated that the vomit bags in her dressing room were to be emptied on the half hour and so can someone please explain to her how it is 12:45 and they’re still sitting there?

Sources at Page Six (I have sources too but they mostly deliver my cable bill) have revealed that Rosie O’Donnell is in another tiff. The issue was an on-air disagreement between O’Donnell and Elisabeth Hasselbeck over the government’s right to monitor private citizen’ phone conversations. Elisabeth is all for it.

Liberal O’Donnell responded, “Elisabeth, you are very young and you are very wrong.” Hasselbeck accused Rosie of ageism and broke down later off-camera. ..Sources told us the insult was the last straw for Hasselbeck. “Her days there are numbered. She is looking to leave,” said the spy.”

Sadly Rosie is right on this. The whole “land of the free” thing shouldn’t just be in a song. But be gentle Rosie, show this girl the light, don’t let her leave us. She’s not bright but she is cute. In this day and age where most people on television are neither let’s bust out the kid gloves, eh? Now, if you want to go after Babwa you have my full support. Rock her.

Britney leaves Promises to attend an AA meeting in Santa Monica. And Perez wins this link by being the only blogger with the sense to clip the other people out of the pic. [Perez Hilton]

The Associated Press has revoked Paris Hilton’s media privileges. [The Blemish]

Hide your crack; Bobby Brown’s out of jail. [Celebrity Smack]

Nicole Richie is not engaged to Joel Madden, people — she’s wearing a ring because we haven’t been writing enough about her lately. Sorry, Nicole. Our bad. We won’t let it happen again. [POTP]

If Rumer Willis wasn’t enough for you, her fifteen-year-old sister, Scout, is now officially drinking age. [dlisted]

Nick Cannon’s not married, just totally pussy-whipped. [Glitterati]

Jessica Simpson on the set of her aptly named film, Blonde Ambition. [A Socialite's Life]

I completely forgot that ANTM premiered this week, so thank goodness someone thought to recap it. [IBBB]

We’re LIVE (on my West Coast Tivo) for American Idol!!

The first eight minutes are a recap. That’s brutal.

Then they all come out singing “Joy to the World?” Lord, do they hate us? This was a bad song when it came out. It was a bad song the day after. It’s a bad song now too and the Idol kids aren’t making it any better. Joy to the fishes in the deep blue sea, joy to you and me. There, now it’s in your head too.

Next up, elimination time. The guys are on the spot. Chris Sligh and Sundance Head are going to be back for more. Blake the beatboxer is safe. Seacrest brings the tall guy, Jared, down to the floor but then tells him he’s safe. Oh Seacrest, you and your little games.

Then, without warning, Nick is going home! Who is Nick? I don’t remember him. Hmmm, maybe that’s why he’s headed home. All the judges tell him he shouldn’t kill himself. Yet. He sings “Fever.” Whatever.

It’s the girls’ time to fret. Stephanie (Beyonce) is safe. Gina is safe. Sabrina is safe. The little sparkplug Melinda is safe. Alaina is going home! Nooooooooooooooooooooooooooo. Sigh. I found her very cute and perhaps even a little clever. Time for her to sing us out. Oh no, she’s breaking up captain, we’ve got tears. PAINFUL. SHE CAN’T SING THROUGH THE TEARS!!!

Oh wow. I really am in pain. The background singers chime in, but it’s all silence from her, she’s just hugging all her fellow gals who have joined her on stage to save her. So BRUTAL. She starts singing again. American Idol, you fuckers. I knew this would happen eventually, how can you ask someone to sing after you’ve shattered them? Plus, why make them sing the song that got them booted? Yikes, thank God that is over.

The guy who won 10k from the Idol cell phone scam looks like he escaped from the zoo.

PICKLER time! She has short hair and a boob job. Is it a crazy style bra? Moving on. Wow, she looks way different. We’ve determined that she either had work done or she’s gotten fatter. She’s also doing a comedy bit with Ryan about sushi. This is bad news, she’s been produced and destroyed. Poor Pickler. The real her didn’t survive, plus, based on her singing, she’d be about 17th this year.

Guy death time. Got to be Sanjaya right? He’s got an odd asexual weirdo jacko vibe going. I’m convinced with the right producer they could make something of him. He’s too strange to not be famous. But wait, AJ Tabaldo gets the boot! The human chia pet is down, and he shares a strange hug with Sanjaya. Hey wait a sec, I know what’s going on here, his last name is Tabaldo. Idol hates Latinos right?

Okay, final death of the evening. Will the hooker go home? With her pouty lips and her photogenic smile? Let’s see. Antonella, Jordin, and Leslie step to the front of the stage. Antonella is safe. Leslie is going home. Crap. She was my other favorite, I kid you not. Why do voters not like the quirky people? Leslie was a little off, and I liked that. Gina is balling, clearly she was buds with Leslie.

I’m now a man without an Idol. I don’t know where to put my allegiance. I’m a free agent.

I think I’m throwing in with Sanjaya because I get this awful feeling that if he loses his life will take a turn where he will EAT people after he murders them.

Crap, I’m now resorting to caps for punchlines.

Time to go to bed.