Paris Hilton smiles but really sad on the inside

Jail bound Paris Hilton hit a BlackBerry Curve launch party at the Regent Beverly Wilshire hotel on Thursday, before heading out for a night of dancing with friends at one of her favorite L.A. hot spots, Teddy’s reports US Magazine.

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Hilton, 26, arrived at 1 a.m. and chatted with sister Nicky and girlfriends, including actress Anna Faris of Scary Movie fame. The “Stars Are Blind� singer sang along to Amy Winehouse’s "Rehab� and hit the dance floor for Michael Jackson's "PYT (Pretty Young Thing).�

“She was getting hugs from her friends and looking rather down and depressed,� says an onlooker.

Meanwhile Paris Hilton's record label has announced that they will be dropping her.

Warner Bros has revealed that they have no plans to work with the heiress "in the for seeable future".

A label insider tells the Daily Mirror, "Paris was sweet but she became more and more unreliable, which was a shame as the first song showed real promise.

"She started missing interviews and everyone lost patience. She claimed she'd been working on the album for years and was proud of it. But the sales just didn't add up and in the end it was an easy decision to make."