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The Hollywood Gossip Week in Review: June 27-July 3, 2009

Happy Fourth of July, celebrity gossip fans. Below, The Hollywood Gossip staff takes a look back at what was a tragic, eventful week in the celebrity world.

As you all know, one story dominated the news ...

• The cause of Michael Jackson's death is looking more and more like an overdose of dangerous prescription drugs. An LAPD and DEA investigation continues.
• Meanwhile, Jackson's ex-wife Debbie Rowe wants custody of "her" kids, while speculation persists that he was not the biological father of his own children. Dermatologist Arnold Klein, who treated MJ, is rumored to be the actual dad.
• Media coverage of Jackson's demise has run the gamut. The OK! cover pic showed him dying, while Life & Style alleges he someone killed him. Amazing.

• In a new interview, Spencer Pratt and Heidi Montag say birth control is a conspiracy, think September 11 was an "inside job," abhor fame, etc. 
• As some Bachelorette spoilers predicted, Ed returned, while Wes Hayden's "girlfriend" Laurel Kagay has been broken up with him for a year.
• In other Bachelor news, Melissa Rycroft is engaged to Tye Strickland!
• Sarah Palin abruptly calls it quits as Governor of Alaska.
• Former John Edwards campaign aide Andrew Young is allegedly writing a tell-all book. One rumor? He has a Rielle Hunter-John Edwards sex tape.
• Kendra Wilkinson wedding pics: Not at all cheesy or tacky.
• Kevin Jonas gets engaged to girlfriend Danielle Deleasa! Yay!
• Robert Pattinson's aunt offers him some helpful dating advice.
• Speaking of dating, check out this Jon Gosselin Match.com profile.

Sarah Palin to Resign as Alaska Governor

Alaska Governor Sarah Palin announced at a press conference yesterday that she is stepping down from her post July 26 and won't seek re-election in 2010.

Palin, who has 18 months left in her first term of office, said she is going to spend more time with her family, but specific reasons why she quit are unclear.

Her rambling, holiday-eve decision to resign as governor blindsided both her supporters and critics and left everyone trying to come up with an explanation.

As Andrew Sullivan of The Atlantic Monthly put it, "it was only a matter of time before she imploded or exploded or some gruesome combination of the two."

Does Palin simply want to devote more time to her family - or her status as a celebrity gossip fixture? Is she starting her 2012 White House bid super early?

Below are 10 theories why Sarah Palin is stepping down ...

1. She's running for president. Conventional wisdom prior to yesterday was that Sarah Palin would be running - and not just in Runner's World - in 2012. Maybe she still is, and is just launching her White House bid three years early?
2. She's not running for president. Conversely, some believe Palin isn’t aiming for the White House or any other office. If that's true, why stay Governor?
3. She's pregnant. Pure, baseless speculation. But would you be surprised?
4. She's sick of Alaska. A CNN source says Palin "thinks she has had a positive influence on people's lives" from traveling around the country like she did last year. Maybe she really believes this is what's best for the party.
5. It was spontaneous. Hey, no one ever accused the loose cannon of thinking things through. See her response to all things Bristol Palin and Levi Johnston.
6. A federal indictment is looming. The Daily Beast's Max Blumenthal reports that Todd Palin's snowmobile sponsor, Spenard Building Supplies, may have been mixed up in questionable political and Palin family business.
7. The media got to her. Palin is never one to shy away from butting heads with media, but Vanity Fair's 10,000-word critique of her this month was a killer.
8. She is unstable. Well, to a point there's no doubt about this one.
9. Her staff is incompetent. Ditto #8.
10. She is a narcissist. Is her ego such that she is angling for greater fame, fortune and publicity than the Alaska Governorship could offer? Does she desire a TV show to go along with her recently-signed book deal?

We are interested to hear why you think she is stepping down. Share your theories with us via comments below. Here's the video of Sarah Palin's resignation ...

Sarah Palin Resignation

Gisele Bundchen Bumps Around Santa Monica

Offering up a glimpse of her growing tummy, Gisele Bundchen was spotted out and about in Santa Monica on Friday afternoon (July 3).

The expecting supermodel looked cute in a floral patterned mini dress with sandals as she ran the day’s errands.

As for Gisele and hubby Tom Brady’s stay on the west coast, the pair are keeping a watch on the construction of a new mansion being built by their pal, John Fish.

Meanwhile, the pair are rumored to be planning a trip to Costa Rica for a little vacation before Tom’s due at training camp in Foxboro on July 21.

Anne Hathaway and Adam Shulman: NYC Lovers

Enjoying a break from her stage duties, Anne Hathaway and boyfriend Adam Shulman were spotted making their way around New York City on Friday (July 3).

Looking very much in love, the “Devil Wears Prada” actress and her beau did a bit of shopping and grabbed a lunch in the East Village - sharing a big smooch while seated at an outdoor table.

As for her latest endeavor, Miss Hathaway has been busy performing in the play “Twelfth Night” at Shakespeare in the Park.

With shows running through July 12, Anne has gotten high praise for her work. Among her fans, David Rooney of Variety wrote: “It’s hard to imagine a more satisfying staging of the crowd-pleasing romantic comedy than this one orchestrated by director Daniel Sullivan, a superb design team and an impeccable cast assembled around Anne Hathaway, who makes a thoroughly winning and accomplished professional Shakespeare debut.”

Mischa Barton: Business in Beverly Hills

Back in the States, Mischa Barton was spotted making her way around Beverly Hills with her pet pooch Charlie on Friday afternoon (July 3).

Reportedly out for a business meeting, the former “OC” actress strolled about in a little denim outfit while enjoying the sunny summertime weather.

Prior to her trip back to California, Miss Barton spent a good deal of time in London - causing a bit of a stir during a night out at Whisky Mist just prior to leaving town.

According to the Daily Mail, Mischa was left a bit embarrassed after being booted out of the commode by a toilet attendant for “dragging a friend into the toilet stall with her.”

Also forcing the attendant to knock repeatedly for taking too long during a solo bathroom break, a NY Daily News source tells: “Her mate was knocking to check she was feeling okay. When she came out of the cubicle she was complaining about people knocking on the door. She looked slightly worse for the wear as she attempted to apply her make-up.”

Whitney Houston: Ready for a Comeback

Prepping for a flight out of town, Whitney Houston was spotted arriving at LAX Airport in Los Angeles on Friday (July 3).

Hitting up the Delta Airlines entrance, the “I Will Always Love You” singer smiled and waved for the paparazzi before passing through security with a few travel companions.

And with a new album on the way, the 45-year-old singer/actress has decided to perform a free show for fans in September as part of the “Good Morning America” Autumn Concert Series.

As for Whitney’s new studio album, the disc is titled “I Look To You” and is scheduled to be released on September 1.

Paris Hilton Films in Dubai, Parties in Beirut

Making for quite the action-packed day, Paris Hilton was busy continuing the filming of her reality television show “My BFF” in Dubai on Friday (July 3).

Showing off four different outfits throughout the day, the former “Simple Life” starlet kicked things of with a press op before heading off to Brummana to take a tour of the Grand Hills Hotel.

While at the luxury hotel, Miss Hilton also participated in an interview with local press before getting all dolled up for the night’s festivities.

Bringing an end to the day’s duties, the hotel heiress tossed on a bright yellow dress as she hosted a big Crystal Jet-Set Audition party in the Lebanese capital city of Beirut.

Heidi Klum’s Playground Family Fun

Displaying her growing baby bump, Heidi Klum tended to her motherly duties by taking Leni and Henry out to a Greenwich Village playground on Friday afternoon (July 3).

Having a marvelous time, the Victoria’s Secret supermodel pushed her darling daughter on the swings before taking a breather on a nearby bench while watching her little ones play in the sandbox.

Making sure that the scene remained safe and calm, a police officer briefly spoke with Heidi and the kids about the paparazzi after some of the parents voiced their complaints.

The day’s playground outing follows what a busy week, as Miss Klum has been working on her “Project Runway” series while her hubby Seal has been been helping out with the kids.

Lindsay Lohan Can’t Stop Smiling

Looking in fine form following her fun-filled birthday, Lindsay Lohan was spotted leaving Samantha Ronson’s house in Los Angeles on Friday (July 3).

Wearing a black tank top with denim short-shorts, the “Mean Girls” actress toted her trusty can of Coca-Cola as she eased her way past awaiting paparazzi.

As previously reported, Miss Lohan enjoyed a daylong outing with Samantha Ronson in celebration of her 23rd birthday yesterday.

The two grabbed up a pizza lunch at Tra Di Noi in Malibu, then making a stop at the hair salon before having dinner at Cecconi’s and clubbing at Villa.

Needless to say, it appears that all is well in the roller coaster romantic life of LiLo and Sam!

Kate Hudson Can’t Get Enough A-Rod

Spending nearly all of her free time with her new beau, Kate Hudson was spotted arriving to Alex Rodriguez’s apartment in New York City on Friday (July 3).

Joined by a couple of friends and her son, Ryder Robinson, the “Fool’s Gold” babe looked cute as she hopped out of a cab and made her way inside for the day’s visit.

Since the two started getting close, Kate has been in attendance at numerous Yankees games, recently watching as A-Rod hit his historic 564th home run this past Friday night.

“Kate was standing and clapping and cheering during the game, especially when A-Rod hit a homerun,” a source told People magazine. “She looked adorable and was so happy.”