Pop Crunch reports Ashlee Simpson and Fall Out Boy’s Pete Wentz are engaged and that Ashlee is pregnant with the bassist’s baby. “Ashlee wasn’t expecting it at all, it was a total surprise,” a mole said. “Pete whipped out a big engagement ring, dropped down on one knee, and asked Ashlee to be his bride. Ashlee says it was romantic, sexy - and that she said yes right away.” Read more.

Update: Contrary to online reports, Ashlee Simpson and Pete Wentz are not engaged. Simpson’s rep tells Usmagazine.com that the rumors of their impending nuptials are “absolutely not true.”

Ashlee Simpson Branching Out On New Album

24/Sizzler hears Ashlee Simpson is working with Timbaland and John Legend on her new album set for a fall release. “She’s using this opportunity to try different things out,” a source said. “She’s opening up herself to trying new things.”

Life & Style magazine reports Ashlee Simpson has spent $100,000 revamping her new Beverly Hills home into a disco, complete with dance floor, state of the art sound system and fully stocked bar. “Ashlee loves to dance - it’s her favorite form of exercise,” a source explained, “and she wants to hold a lot of parties at her new place.”

Ashlee Simpson Recording New Album

Ashlee was spotted at Tracy Ross on Sunset before heading back to the Jim Henson Studios with a friend. Asked if she was working on a new album, the singer responded yes. Pictures and video from x17online.com have since been removed.

Ashlee Simpson Dating Ryan Phillippe?

Spy witnesses tell ‘Extra’ that Ryan Phillippe may have shared a hot date with Ashlee over the weekend, and Us Weekly’s Caroline Schaffer said they were turning heads at a Hollywood club. “One club-goer says that Ashlee Simpson and Ryan Phillippe spent about two hours talking, Ryan was mixing vodka cocktails,” Schaffer dished. “They were giggling, having a great time.”

Ashlee Simpson’s Secret Fling With Kelly Slater

New Weekly magazine reports that prior to Cameron Diaz’s rebound romance with Kelly Slater, the surfer had been secretly romancing Ashlee Simpson. The pair hit it over when Ashlee was vacationing in Hawaii at the beginning of January. “Ashlee was looking for some fun in the sun and that’s exactly what she found with Kelly,” a friend revealed, adding that “They remain friends” even though the romance fizzled out quickly.

Star magazine reports that following the American Music Awards, Ashlee Simpson was spotted at Hyde with Fall Out Boy squeeze Pete Wentz, where she took a bathroom break to check herself out in front of the mirror. A source said the singer appeared to be obsessing “with herself and her appearance and while talking to her friend. She never took her eyes off of herself.”

The story at starmagazine.com has since been removed.

Ashlee Simpson Feeling Fat

Life & Style reports that when Ashlee Simpson went to the bathroom mirror to apply a bit of makeup during a visit to Hyde in Hollywood with Fall Out Boy boyfriend Pete Wentz on November 21st, the singer turned to her side, stared at her reflection, sucked in her stomach and sighed, “Ugh, I ate so much tonight. I feel so fat!” The mag’s letter in response at lifeandstylemag.com has since been removed.

Ashlee Simpson Canoodles With Married Man?

The New York Post reports married actor Taye Diggs was spotted “cheek to cheek” with Ashlee Simpson at G Spa last week. The pair drank tequila shots and were seen whispering up close and intertwining arms for a half hour. A rep for Ashlee, who is reportedly dating Fall Out Boy bassist Pete Wentz, insisted the singer and Diggs are “just friends.”

Halloween With The Stars

Jay Leno joked during his Tonight Show monologue on Wednesday night, “But I tell you, I saw some very creative costumes this year. Did you see Nicole Richie? Great costume. She covered herself in sesame seeds, went as a bread stick. Yeah, I thought she looked fabulous. … And Ashlee Simpson, you see her? A great costume. She went to see her plastic surgeon, got her original nose, and then trick-or-treated as her old self. … Actually, one awkward moment at Madonna’s house, when she opened the door and saw one little kid that was so cute, she said to the parents, ‘Oh, he’s darling. How much you want for him?'”