DINA: LINDSAY'S NOT ENGAGED!

On Aug. 31, just hours before heading off to Hawaii for some R&R with his girlfriend of two months, Lindsay Lohan, 20, Harry Morton, 25, was spotted inside the Cartier jewelry boutique on Beverly Hills' tony Rodeo Drive. Immediately reports surfaced that Morton — the wealthy son of former hotelier Peter Morton — had bought Lindsay an engagement ring.

But in an exclusive interview with Star, Lindsay's mom, Dina, squashed those rumors flat. "It's absolutely not true," Dina tells Star. "They are not engaged." But, she allows, they could be someday. "They love each other and they care for each other," Dina adds.

"They're dating and it's moving along." But more importantly, her daughter is happy. "He's a great guy and he's been a great influence on her," she says. "I just really like that Lindsay is happy. I'm just happy that she has someone she can trust."