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Update From E!Online Inside sources tell us exclusively that Duff's character Olivia is a movie star who just wants to live a simple peasant girl's life at college and date a simple unfamous guy. Lucky for her then that Dan doesn't know who she is and that he wants to hook up with her. Yep, not only are Dan and Serena all permanently broken up, but Dan is stepping out on Serena with this new girl Olivia. E!Online

Is the Upper East Side big enough for Serena, Blair and the Duffster?! We're about to find out because the onetime tween sensation is joining Gossip Girl for a multi-episode arc, sources confirm to me exclusively.

The actress-designer-pop chanteuse will play Olivia Burke, a movie star who enrolls at NYU in search of a traditional college experience. She ends up rooming with Vanessa (Jessica Szohr) so it's safe to say she'll be majoring in Drama!

Duff will debut in this season's fourth episode, slated to air Oct. 5.

Gossip producers spotted an opening in Duff's schedule after NBC passed on her comedy pilot Barely Legal.

What say you, Gossip gurus? Do you approve of Duff's casting? Thoughts on who she'll be paired with romantically? (My guess: Dan.) Sound off below!
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Latest from Kristen
Amy in Pittsburgh: So excited Gossip Girl is back in production! What can you tell us?!
Sorry, Hilary Duff haters, but Duff joins the Gossip Girl cast as movie star Olivia, and she'll be getting her movie-star cooties on the entire cast, not just Vanessa and Dan. Also on Gossip Girl this season, Chuck and Blair are totally getting married and having a million babies. (OK, not that, but they are staying tight. Yay!) And believe it or not, the show really is trending away from "Dan and Serena are the one true pairing of Gossip Girl." Certainly, that arc might turn back sometime in the future, but for now the show is trying to establish their separate identities, apart from their on-again, off-again shenanigans. Is that great news or the worst thing you've ever heard? Post in the comments!

Gervase in Montreal, Quebec: Thanks for the interview with Blake Lively about Papa van der Woodsen. Are we actually going to see Serena's dad this season on Gossip Girl?
TV Diva's Magic 8-ball says: It is decidedly so. We will finally meet Serena's dad this season on Gossip Girl.

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Latest from Ausiello
Question: Could you reward us with a little Gossip Girl scoop? Just enough to tide us over 'til September? Pretty please? --Jon
Ausiello: There will be a controversial hookup early on in season 3. And one of the participants of said controversial hookup will be Dan. Don't say I didn't warn you.

Question: Is Vanessa from Gossip Girl going to get her own storyline next season? Despite what some may think there is Vanessa love out there. --Jess F.
Ausiello: Yes, she's getting her own storyline. A romance, in fact. With someone she met briefly at the end of last season. Commence with the dot-connecting.