TMZ first reported ... the Aspen D.A. was originally willing to allow Sheen to plead guilty to a felony with no jail time. Sources say under the D.A.'s old proposal, Charlie would be placed on probation for 2 years and at the end of the period his conviction would be expunged -- erased.

But sources say Sheen's people had a practical problem with the plea proposal -- As one source said, "There are a lot of ways to violate probation, and we don't want Charlie doing something that in the next two years could land him in prison for a probation violation." Translation -- Charlie would probably do something to cross the legal line in the next 2 years.

Sources also say, Charlie was also worried someone would try to extort him -- i.e., some woman would demand money, or else she'd go to the D.A. with a bogus story. As one source says, "Charlie has a giant bull's eye on him."

So our sources say there's a new proposal on the table -- Charlie would plead either guilty or no contest to a misdemeanor and get jail time. We're told right now Charlie is willing to accept 10 days in jail but the D.A. wants at least 30 days.

The reason Charlie's people want jail time -- once he serves his sentence he would either not be placed on probation or he'd get probation for a very short period of time -- so if he screws up later, the Aspen case won't come back to bite him.

We're told there are active negotiations underway between Charlie's lawyers and the D.A., but so far no deal has been reached.

Sheen was arrested Christmas morning in Aspen, Colorado for felony second degree assault, felony menacing and criminal mischief -- a misdemeanor. Brooke told 911 dispatchers Charlie had a "knife" and "threatened me" and that she feared for her life.

As we first reported, Brooke was legally drunk with a .13 blood alcohol level when she made the 911 call ... at 8:34 in the morning.

The bowler hat is all the rage in Hollywood these days -- can you guess which stars are gettin' in on the headgear trend?

Oprah Winfrey let her hair down and threw her hands up as she partied with the likes of Diddy, Usher, and Pharrell at an afterparty for the MET Gala in NYC on Monday.

Vogue editrix Anna Wintour and Katy Perry were also among the party crew spotted in the pics posted on Pharrell's blog -- as for Stedman, he was nowhere to be seen.

Ain't no party like an Oprah party.

Can you guess which celebrity busted out these stunning stems while strolling the streets of NYC over the weekend?

These "Macho Men" (and women) could be next in line if the Village People pulled a Van Halen and revamped the band!

TMZ is tackling the age-old question -- Who's hotter? So step right up and vote for which celebrity bod is better!

The only thing hotter than a teeny-weeny bikini this summer is one of these smokin' blonde babes.

Can you guess whose lucky little man got hooked up with a free piggy back ride through NYC yesterday?

A trusty pair of sunglasses are a staple in any celebrity's wardrobe -- and everyone seems to be relying on one trendy brand!