Taylor Momsen Still On Gossip Girl -- Just Less

Don't count Taylor Momsen out yet.

Despite reports that the 17-year-old actress was placed on an indefinite hiatus from the CW hit Gossip Girl after acting increasingly erratic, a source tells PEOPLE she'll still be playing Jenny Humphry.

"She is still a series regular. She's still totally a part of the show," says the source. "Yes, you have seen less of her this season, but it's dictated by creative [executives]."

The source says as Blake Lively and Leighton Meester's characters went off to college, storylines – including the younger Momsen's Jenny – have just been harder to set up.

"They graduated high school ... [and] they found that it was hard to put all of them in the same environment in a natural way," says the source. "When you see Jenny they want her to be driving the story, not just hanging out with the mean girls back in high school."

And although Momsen has raised eyebrows with her behavior, including flashing the crowd during a concert with her band The Pretty Reckless last month, "this has nothing to do with her bad behavior or her music career," says the source. "She's still under contract and she's still a part of the show. She's just in fewer episodes."

Credit: People

Taylor Momsen Suspended from "Gossip Girl"

Are Taylor Momsen's Gossip Girl days over?

The increasingly controversial 17-year-old actress will begin an "indefinite hiatus" from Gossip Girl following next Monday's episode, sources tell Deadline. Reps for the CW and Warner Brothers declined to comment.

Momsen has played Jenny Humphrey, kid sister to Dan Humphrey (Penn Badgley) since the CW soap debuted in 2007. Although a series regular, she has only appeared in three episodes so far in the current fourth season.

"She only does [the show] for the money," a source explains to Us Magazine. "She works hard on Gossip Girl but doesn't care about the plot or the other cast members. She treats it like a 9-5. No emotional investment."

Momsen, who also fronts the rock band Pretty Reckless, has grown up since her big-screen debut at age 7 as cute Cindy Lou Who in How the Grinch Stole Christmas -- raising eyebrows with her skimpy, intensely Gothic wardrobe, notoriously foul-mouthed interviews and angry, age-inappropriate antics.

The new Us Weekly even reports that, for her Oct. 21 Pretty Reckless concert at NYC's Don Hill's (in which she flashed her breasts to the crowd) Momsen had a startling request: "Her rider included a full bar in her dressing room," an insider told Us. "That was rejected -- she's underage!"

Credit: Us Magazine

Blake Lively, Leonardo DiCaprio Out To Dinner

Newly single Blake Lively dined with Leonardo DiCaprio at NYC eatery The Lion on Wednesday, an insider confirms to UsMagazine.com. (LaineyGossip.com first reported the sighting.)

But Lively, 23, and DiCaprio, 35, weren't alone. "It was an 8 person dinner," the insider explains, adding that director Baz Luhrmann was in attendance.

And the meal was strictly business: DiCaprio has been cast as Jay Gatsby in Luhrman's adaptation of The Great Gatsby, F. Scott Fitzgerald's classic book -- and Lively is being strongly considered for the role of Gatsby's love, Daisy Buchanan.

The director's "whole crew was there," the source says, adding that DiCaprio and Lively "didn't leave together."

Lively would have to fight off strong competition to win the role of Daisy. Scarlett Johanson, Natalie Portman, Keira Knightley and Michelle Williams are also contenders, according to Deadline.

Lively and Gossip Girl costar Penn Badgley recently ended their three-year romance, her rep told Us Weekly exclusively last week.

DiCaprio is still going strong with Bar Refaeli, his model love of over four years.

Credit: Us Magazine