His disastrous Letterman interview brought Joaquin Phoenix's whole quitting-acting-to-become-a-bearded-rapper shtick to a dizzying climax last night. Dave played it off as legit. Others think it's all an Andy Kaufman-esque hoax. We think it's both!

Here's Joaquin Phoenix on David Letterman later tonight, either stoned out of his mind or just medically catatonic (or both). Letterman makes several heroic efforts to politely prompt Phoenix before ruthlessly mocking him.

Dakota Fanning has thus far built a whole career out of appearing unsettlingly wise for her age on screen. Now, she aims to befuddle in a whole new way.

For the most part, the Late Show's David Letterman kept his audience under control for the duration of Rod Blagojevich's appearance, airing later tonight. But he couldn't always.

Since it's not enough that he's a New Yorker contributor, perennial SNL and Oscars host, movie star and chart-topping banjo player, Steve Martin had to be awesome on David Letterman last night.

• A round of staff cuts at the Journal may come next week. [Portfolio]
• CBS and David Letterman are negotiating a new deal to keep him on the network after his contract expires in 2010. [B&C]
• Is The New Yorker in trouble? [Gawker]
• Gannett, the largest U.S. newspaper company, is writing off $5 billion. [E&P]
• Dreamworks and Pepsi have a 3D commercial airing during the Super Bowl on Sunday. You'll need special glasses to watch it, however. [Time]

David Letterman is reportedly in talks to extend his CBS contact beyond 2010. The idea is to take ratings from Conan O'Brien's Tonight Show; further taunting Jay Leno is a fringe benefit.

Leno-less Letterman negotiates for post-2010 latenight domination. [B&C]

The awkwardest David Letterman interviews. Yeek. We need air. [Cracked]

Top row (from left): Daniel Craig, Russell Simmons, David Letterman. Bottom row (from left): Giorgio Armani, Beyonce, Donatella Versace.

Nothing says Christmas like two people screaming at each other. Gawker video guru Richard Blakeley compiled and ranked the ten very best of this contentious year.

With Seven Pounds sputtering and stalling right out of the gate, Will Smith had little reason to laugh last night on The Late Show. Fake-laugh, though? Watch and learn from the best.

Not a day goes by that Jennifer Aniston fails to remind us that she was naked in GQ this month (but can she wrest December's nudity crown back from usurper Scott Caan?).

It seems any Tom Cruise appearance lately is predicated on image rehabilitation, whether making amends with Matt Lauer, who he famously suckerpunched on live TV in a heated disagreement over Wellbutrin,

This clip of Tom Cruise on David Letterman later tonight, in which he laughs about his fear of psychiatry and his insane, megalomaniacal tendencies, is one piece in a set: Scientology Prince asserts normalcy.

It's not always easy for young children of different faiths to distinguish the singular pleasures of Christmas from those of Chanukah. Now, thanks to Adam Sandler, the distinction is clearer than ever.

It's reconciliation day: Letterman invited Leno, Madonna offered to visit Guy Ritchie and even Marc Jacobs dropped the drama. Tom Cruise is still kind of a bastard, though.

John McCain will tell David Letterman tonight about how corrupt Illinois governor Rod Blagojevich was a huge admirer of the former Republican presidential nominee, and planned to model his tenure on McCain's. Mission accomplished!

Paula Abdul's Tchochke-Pimping/Fan-Suicide Post Morteming World Tour landed in the Late Show hot seat last night, where Dave—a stalkee's rights activist if ever there was one—advocated on behalf of the Idol judge.

David Letterman, who was harassed by a stalker through the early 1990s, was partly serious when he told American Idol judge Paula Abdul she should sue Idol producers and Fox for toying with her and a longtime stalker, who ultimately committed suicide near Abdul's home.