Nancy Grace is perplexed that Ryan O'Neal dropped out of "Dancing with the Stars" because of her, telling TMZ, she never said anything bad about him.

Sources directly connected to Ryan tell us ... the actor was all set to do DWTS but dropped out because Nancy has said bad things about his son Redmond, who has had chronic drug problems, and also suggested he was a bad parent.

But Grace tells TMZ, "We have never covered Mr. O'Neal nor his family on our show," adding, "I hate that he dropped out of DWTS; I would have loved to compete with him and wish him the very best."

Grace says she considers O'Neal to be one of the great actors of our time and she finds his relationship with Farrah Fawcett "an inspiration to me."

Nevertheless, O'Neal has bitter feelings toward Grace ... and he freely discusses that in private.

Ryan O'Neal said he backed out of "Dancing with the Stars" because of a bad knee, but multiple sources connected with the show tell TMZ ... he REALLY backed out because he can't stand Nancy Grace.

Sources tell TMZ O'Neal feels Grace has been "disrespectful" to his family ... claiming she has gone after Redmond, who has had ongoing drug problems, and even suggested the reason Redmond is messed up is because Ryan is a bad parent.

We're told Ryan really wanted to do the show, but could not co-exist with Grace.

Ryan O'Neal claims an obsessed, demented, Farrah Fawcett fan is behind recent accusations he stole a $30 million Andy Warhol portrait of Farrah ... so he's suing the guy for defamation.



Farrah donated her vast collection of art to her alma mater, the University of Texas.  One of the pieces she donated was one of two famous Warhol portraits of the "Charlie's Angels" star. 



O'Neal insists the other portrait is his -- given to him by Warhol, who was a close personal friend.  He says it's one of his most  "prized possessions and a precious memento of his life with Ms. Fawcett."

According to the lawsuit, filed by Marty Singer, Craig Nevius -- who has been dogging O'Neal for years -- began telling various media outlets that he stole the portrait in question from Farrah.  Last month, "Good Morning America" and Star Magazine ran stories that O'Neal was being investigated for theft -- something O'Neal calls "false, malicious and defamatory."

The stories triggered a demand from the University of Texas that O'Neal turn the portrait over, stat.

O'Neal says Nevius has been wretched for years, selling medical information about Farrah to the tabloids as she battled cancer.

O'Neal says he will never sell the portrait, and when he dies he'll will it to his son, Redmond O'Neal.

O'Neal says he's suffered "humiliation, mental anguish and emotional distress," and he's been damaged in excess of $1 million.

UPDATE: Nevius sent us a statement saying "At no time have I ever claimed" that Ryan stole the portrait. 

Here's former "Hills" actress Kristin Cavallari in Beverly Hills on Wednesday (left) -- and iconic "Charlie's Angels" sex symbol  Farrah Fawcett back in the '70s (right).



One of them is the real deal.

We're just sayin'.

On the one year anniversary of her death, Ryan O'Neal and son Redmond visited the grave of Farrah Fawcett at Westwood Village Memorial Park Cemetery yesterday.


Redmond was granted special leave from the Pasadena sober living facility where he is undergoing court-ordered drug rehab.

The anniversary of Farrah's passing was largely overshadowed yesterday by the one-year anniversary of the death of Michael Jackson.

RIP Farrah.

The people behind the Academy Awards claim they left Farrah Fawcett out of the Oscars In Memoriam montage this year because she was better known as a TV star -- which begs the question, how the hell did Michael Jackson make the cut?!?!

Bruce Davis -- the executive director of the film academy -- told the Associated Press both Fawcett and Gene Berry were more famous for their "remarkable television work" and would therefore be more appropriately honored at the Emmys.

So by that logic, Michael Jackson would probably be more appropriately honored at the Grammys right? Oh wait, he was!! Kinda contradicts your point, huh Bruce?

For the record -- Davis had no excuse for blowing off Bea Arthur and Captain Lou Albano, who starred in the theatrical masterpiece "Body Slam" back in 1986.

Ryan O'Neal is "confused as anyone" by Farrah Fawcett not making the In Memorium cut at The Oscars last night -- and he plans on writing a letter to the Academy protesting the snub.


Moments ago outside his Malibu home, Ryan told cameras he and Tatum were "shocked" by the Farrah omission -- saying maybe it happened because "she wasn't well known enough."

FYI -- 88% of TMZ voters agree Farrah should have been part of the tribute.

Farrah Fawcett did not make the cut for this year's In Memoriam tribute during last night's Academy Awards telecast ... leaving many scratching their heads.

Despite appearing in such classics as "Sunburn," "Saturn 3," "The Cannonball Run" and "Dr. T and the Women," Fawcett was passed over for more household names ... like Michael Jackson.

An Academy spokesperson told the AP, "Every year it's an unfortunate reality that we can't include everybody."

The estate of the late Farrah Fawcett is suing the guy behind the Farrah documentary -- claiming the dude sold Farrah out to the paparazzi and embezzled hundreds of thousands of dollars.

According to a lawsuit filed today, in L.A. County Superior Court, Fawcett hired a guy named Craig Nevius to put together "Farrah's Story." Farrah's lawyers claim Farrah gave Nevius "access to private and personal information, film footage" and other materials.

When Nevius turned in his cut of the film, Farrah's lawyers say it was "amateurish and sensationalized, and looked like tabloid journalism, which was not at all what Ms. Fawcett wanted."

Upon hearing of Farrah's rejection, the lawsuit claims Nevius sought out "misplaced revenge" by (among other things) intentionally revealed private, personal information about Fawcett, gave out footage without her consent and embezzled tons of money from the trust she set up to manage the film.

Nevius tells TMZ, "These accusations are nothing more than a fabricated press release disguised as a lawsuit. As much as I would like to answer the allegations and disprove them right here and right now in the court of public opinion, I will wait to do so in a court of law."

The estate is seeking unspecified damages.

One month after the death of his longtime companion Farrah Fawcett, Ryan O'Neal told our cameraman last night "I miss my girl."


O'Neal -- who was in a great mood outside of Mastro's -- also talked about Michael Jackson passing on the same day as Farrah, explaining "It was icon day."

Just one day after Farrah Fawcett's funeral, a somber Ryan O'Neal was out in Malibu.


Ryan said it was "fantastic" to have son Redmond out of jail for the service, but when we asked him how he was feeling, Ryan only said "I don't know yet. It's hard to believe."