We have more info on Carrie Prejean's abrupt about-face during the settlement negotiations with Miss California USA lawyers -- when they showed her the X-Rated version of Home Alone ... starring Carrie herself.
When the video started playing, Carrie's first reaction was "that's disgusting" ... and Carrie denied it was her.
Then, the camera angle changed ... and panned up to her face. She was caught red-handed ... so to speak.
Carrie was rendered speechless and immediately began talking with her lawyer. We're told it took about 15 seconds for Carrie to drop her $1 million dollar demand.
Carrie Prejean demanded more than a million dollars during her settlement negotiations with Miss California USA Pageant officials -- that is, until the lawyer for the Pageant showed Carrie an XXX home video of her handiwork.
The video the lawyer showed Carrie is extremely graphic and has never been released publicly. We know that, because TMZ obtained the video months ago but decided not to post it because it was so racy. Let's just say, Carrie has a promising solo career.
We're told it took about 15 seconds for Carrie to jettison her demand and essentially walk away with nothing. As we first reported, the Pageant is paying around $100,000 to her lawyers and publicist -- a fraction of her bills. She pockets nothing in the settlement.
Carrie Prejean nets a big fat zero in her settlement with the folks at Miss California USA, sources tell TMZ.
Carrie and the Pageant officials have settled their lawsuits against each other and the terms were confidential ... until now.
We've learned the Pageant will fork over around $100,000 for Carrie's lawyers and publicists connected with the public battle royale. That money goes directly to her flacks and not into her bank account. We're told Carrie personally gets zilch.
What Carrie walks away with: Her book comes out on Monday and we're told the Pageant won't fight her for writing it without its permission.
Carrie Prejean is finally firing back at the people behind Miss California USA with a lawsuit -- claiming Shanna Moakler and other pageant officials forced her out because of her religious beliefs.
Prejean just filed the suit in L.A. County Superior Court, accusing Moakler and pageant honcho Keith Lewis of religious discrimination, defamation, public disclosure of private facts, intentional infliction of emotional distress, and negligent infliction of emotional distress.
Prejean was dethroned/fired from her post as Miss California USA back on June 10, nearly two months after she spoke out against gay marriage at the April 19th Miss USA competition.
Prejean claims the Miss Cali people "conspired to get rid of her" beginning on April 21st -- when she said on the "Today" show that she would rather be "biblically correct than politically correct."
Reps for Miss California USA have previously explained that Carrie was fired for missing appearances she was supposed to make for the organization and for not getting clearance to do extracurricular activities.
Donald Trump -- who owns the Miss Universe Organization -- is NOT named in the suit.
But in her suit, Carrie says the Miss Cali USA people "fabricated a fraudulent list of some 50 public appearances allegedly missed by Prejean which they released to the media in order to justify her termination as Miss California USA."
In the suit, Carrie claims officials also tried to "set up Prejean to have her dismissed as Miss California USA by asking her to do a Playboy photo shoot for $120,000."
UPDATE: A rep for Moakler tells TMZ: "Ms. Moakler has not yet been served with Carrie Prejean's lawsuit. However, on Ms. Moakler's behalf, I can say unequivocally that Ms. Prejean's lawsuit is without merit. More importantly, as everyone who watched or read her public statements is well aware, Ms. Prejean's unfortunate and bigoted statements are responsible for any public humiliation or damages to her reputation that she has claimed to have suffered. Ms. Moakler strenuously denies that she did anything wrong and looks forward to proving that in a court of law."
TMZ just received the following statement from Miss California USA honcho Keith Lewis, lashing back at the lawsuit Carrie Prejean filed against him this morning for religious discrimination: "It appears that suits from both sides are now inevitable against the other.
I would guess Carrie sees it as a chance to get publicity for her upcoming book because in the interviews I have seen, she talks about the suit and the book in the same breath.
We have no problem with her selling lots of books - considering in the current situation we could stand to profit from every copy she sells.
For us, it has never been about her beliefs and we have always just wanted to move on.
But it seems like Carrie really has nothing new to talk about or anything new in her life so the impression is she just keeps looking for ways to rehash her position as a victim because of her onstage answer."
UPDATE: Keith just added a bit more ... "I guess hell hath no fury like a Miss without her crown. We're all looking forward to a less litigious party when we crown the next Miss California USA November 22."
Carrie Prejean says she means business. She's giving the Miss California USA team one last chance to clear her name -- or she's gonna sue.
In a letter Prejean's lawyer fired off to the lawyer representing pageant honcho Keith Lewis, the attorney says Lewis defamed her by making her seem uncooperative and difficult to deal with. He did not address Donald Trump's comment to us ... that Carrie treated people "like s**t."
The letter also accused Lewis of using Carrie to push a gay agenda.
And here's the best part ... Carrie's lawyer says Lewis had no right to release her confidential medical information -- aka, a boob job.
The letter claims Carrie has suffered "severe emotional distress." If Lewis doesn't recant his comments, Carrie's lawyer promises a lawsuit.
UPDATE: Keith Lewis gave TMZ the following statement: "Mr. Limandri obviously has never watched "THE APPRENTICE" if he believes that Mr Trump could be so easily fooled. Facts are facts and we stand by them. No matter what strong wind the General Council of NOM will blow, Our vest of truth will stay on."
Carrie Prejean has threatened to sue the Miss California USA folks for defamation, we've learned. But we just obtained a letter the pageant's lawyer fired off to Carrie's lawyer, threatening to sue her for her "churlish insolent misbehavior."
The long letter details the alleged misdeeds which led to Carrie getting das boot. For starters, the pageant's lawyer says Carrie is full of it when she stated publicly she didn't ink a book deal. The letter also says Carrie had wrongfully turned down 39 pageant appearances since May 12.
And the letter claims Carrie defamed pageant honcho Keith Lewis when she said he "pressured her to appear in Playboy." Lewis says he merely passed on the offer, which he never advocated she take.
The letter says Carrie was fired because of her "intolerable misbehavior," citing "hostile communications from Carrie."
The letter threatens this: "If Carrie Prejean wants to assert in public that she was courteous, cooperative or professional in her conduct as Miss California USA, the history of her churlish insolent misbehavior can be presented."
The lawyer goes on to demand that Carrie stop making defamatory remarks and recant the ones she already made ... or else.
Hustler really has a soft spot for ex Miss California Carrie Prejean -- they're offering her $500,000 for the chance to wear the crown again. Which, in Hustler code, means girl-on-girl action.
Hustler fired off a letter to Carrie, offering her 500k to play the role of Miss California in an "interactive parody film" called "You're Nailin' Palin" -- which stars the XXX version of failed VP candidate Sarah Palin.
In the flick, "biblically correct" Carrie will have to go at it with Palin -- but the letter goes on: "Don't worry, you'll also have an opportunity to enjoy some opposite sex as well."
Carrie Prejean told Larry King the Miss California USA people were pushing the gay agenda so hard they couldn't hide it -- even asking her to go to a gay event in disguise.
Prejean insinuated pageant officials wanted her to pose in Playboy -- they've told us they were merely passing the offer along, per her demand.
Prejean did not address Donald Trump's statement to us ...that she treated people in the pageant like s**t and refused to participate in 30 sanctioned events.
Carrie Prejean's "disappointed" she no longer has that sparkly crown -- but the ex-Miss California isn't pissed at The Donald for telling her she's fired.
The "biblically correct" former beauty queen was on FOX News last night (natch), where she said she respects Trump as a business man and believes he was just caught in the middle -- and she was the easiest person to get rid of.
Fired Miss California USA Carrie Prejean was offered a huge amount of money to appear on a reality show.
We got hold of an email sent by a pageant honcho to Carrie on May 15th. Lewis writes producers from "I'm a Celebrity ... Get Me Out of Here!" offered her $70,000 to appear on the show for one week and $140,000 if she stayed for 3 weeks. The show also gives money to charity but who knew the "celebs" scored that kind of payday?
Lewis wrote that he had declined the offer and wanted an email from her also rejecting the offer.
The email also confirms the story we broke yesterday -- an email from Lewis to Carrie stating that Playboy wanted to do a shoot with her that involved "partial nudity" and that it would have to "take place soon." Prejean told us yesterday that Playboy offered $140,000, but the email says the offer was $120,000.
First it was the Donald -- now some clothing company is firing Carrie Prejean.
Sledge USA, which claims to create clothing for fashion-forward, young contemporary and junior women, announced in a press release today that they too were cutting ties to the ousted Miss California USA (seen right in a promo photo for the fashion line).
They say their decision was based on "was based on Miss Prejean's neglect to fulfill promotional requests." The Miss Universe organization cited similar reasons when they dumped Carrie yesterday.
She had only been Miss California USA for a few hours -- but last night on "Larry King Live" Tami Farrell did what Carrie Prejean couldn't: She put the polarizing gay marriage issue behind her.
Sure, it's kind of a cop out to not take a stance on the issue, but as she rightly put it: "It's silly ... that the world is looking to beauty queens for the answer." Just smile and wave.
FYI -- Though Prejean believes otherwise, pageant officials swear Carrie's political beliefs had nothing to do with her firing.
We have more info on Carrie Prejean's abrupt about-face during the settlement negotiations with Miss California USA lawyers -- when they showed her the X-Rated version of Home Alone ... starring Carrie herself.
Carrie Prejean demanded more than a million dollars during her settlement negotiations with Miss California USA Pageant officials -- that is, until the lawyer for the Pageant showed Carrie an XXX home video of her handiwork.
Carrie Prejean nets a big fat zero in her settlement with the folks at Miss California USA, sources tell TMZ.
Carrie Prejean is finally firing back at the people behind Miss California USA with a lawsuit -- claiming Shanna Moakler and other pageant officials forced her out because of her religious beliefs. 
TMZ just received the following statement from Miss California USA honcho Keith Lewis, lashing back at the lawsuit Carrie Prejean filed against him this morning for religious discrimination:
Carrie Prejean says she means business. She's giving the Miss California USA team one last chance to clear her name -- or she's gonna sue.
Carrie Prejean has threatened to sue the Miss California USA folks for defamation, we've learned. But we just obtained a letter the pageant's lawyer fired off to Carrie's lawyer, threatening to sue her for her "churlish insolent misbehavior."
Fired Miss California USA Carrie Prejean was offered a huge amount of money to appear on a reality show.
First it was the Donald -- now some clothing company is firing Carrie Prejean.
