'Dreamgirl' Jennifer Hudson wins Oscar  —  LOS ANGELES - Jennifer Hudson won the supporting-actress Academy Award on Sunday for "Dreamgirls," though her co-star and fellow front-runner Eddie Murphy lost the supporting-actor prize to Alan Arkin of "Little Miss Sunshine."

Children Visit Britney Spears in Rehab  —  Britney Spears saw her children during a weekend visit to Promises, PEOPLE has learned.  —  Estranged husband Kevin Federline brought their boys, Sean Preston, 17 months, and Jayden, 5 months, to the Malibu rehab center Saturday evening, a source says.

Bad heir day ruins Paris' party  —  HOLLYWOOD — Leo, Clint, Naomi and Beyoncé were among those who lent glamour to parties on Oscar eve.  But if you were looking for celebrity mayhem, Paris Hilton's birthday bash Saturday night was the place to find it.

NAOMI WATTS: FASHIONABLY EXPECTING?  —  Did a fashion publicist just out Naomi Watts as a mom-to-be?  Although the New York Post's Page Six reported on Wednesday that the actress is expecting a baby with boyfriend Liev Schreiber, her rep has officially kept mum.

Birkhead - Stern Settlement?  —  TMZ has learned that lawyers for Larry Birkhead and Howard K. Stern are in settlement negotiations.  —  There was a buzz at the courthouse after Krista Barth, Stern's lawyer, removed a styrofoam cup of water that rested on the witness stand as Birkhead testified in the Anna Nicole burial hearing.

Heather Locklear and Jack Wagner: Hot, New Couple?  —  Heather Locklear and Jack Wagner turned heads when they showed up holding hands at Dreamworks chief Jeffrey Katzenberg's The Night Before party at the Beverly Hills Hotel on Feb. 24!  —  "They looked very much like a couple …

Katie Holmes on Motherhood: 'I Love It'  —  Showing off her post-baby figure in a strapless champagne-colored Armani dress, Katie Holmes tells PEOPLE of motherhood: "I love it!"  —  Holmes left 10-month old Suri at home with her sister-in-law Saturday night to attend a Giorgio Armani Prive fashion show …

MARRIAGE BUG BITES HEFNER  —  IT'S not true that nobody in Los Angeles can talk about anything except movies.  The buzz of the weekend Oscar parties was that Hugh Hefner, 80, will get married again before the end of the year to his No. 1 girlfriend, Holly Madison.

Pix & Vids  —  Cameron Diaz leads the pack as Gwyneth & Beyoncé catch up, Nicole & Naomi hang, J.Lo plays and more  —  "This is the only naked man that will ever be in my bedroom," says Melissa Etheridge of her statue.  Plus: George Clooney and more  —  See the list of major winners and nominees

Daniel Baldwin: Britney Doing "Great" in Rehab  —  Britney Spears seems "a little fearful" but is "doing the do," according to Spears' rehab compatriot Daniel Baldwin, 46, who says he's 97 days sober and recently ran into the pop princess in Malibu.  —  "I told her if she needed anything …

Cameron Diaz in a Bikini, Smoking a Joint, with Drew Barrymore, also in a Bikini  —  I don't know what it is with all the celebrities smoking pot in public lately, but it seems to be the new trend.  Yay!  (Note: sarcasm)  —  Last week we saw Paris Hilton smoking pot in the passenger's seat …

Jack Nicholson goes bald at Oscars  —  LOS ANGELES - Is Jack Nicholson playing Lex Luthor in the next "Superman" movie?  Maybe he'll be Daddy Warbucks in a remake of "Annie."  Or perhaps he's going to the same hairstylist as Britney Spears.  —  As host Ellen DeGeneres walked onto the stage …

MUMBLEDORE - GAMBON TO BE DAD AT 66  —  EXCLUSIVE Harry Potter wizard Sir Michael Gambon to be a dad at 66 as lover 41 pregnant  —  Sir Michael leaves Philippa's house yesterday in Chiswick, West London (Pic: Colin Jack)  —  HARRY Potter star Sir Michael Gambon is to become a father at 66 - with a woman who is not his wife.

POPBYTES LIVE BLOGGING OSCARS '07!  —  hey golden boys & girls!  here we go - wish me luck!  if anyone has anything to say please post a comment or just email me direct at mk@popbytes.com and i'll be sure to include what you might have to say!  let the good times begin...

BACKSTAGE AT THE OSCARS: WHAT YOU DIDN'T SEE  —  • Leonardo DiCaprio, impressing the heck out of Steve Carell.  "He shook my hand and said 'Hey buddy,'" Carrell says.  "He's like the smoothest guy on the planet.  It's pretty cool."  —  • Later, Leo makes another good impression …