greengrass, They may be dating, but Kelly Monaco denied it in the most recent CBS SID. She said they are two of the very few singles in the cast so they enjoy doing things together outside of work. She also said that at that beach party on the fourth, she was around lots of other male guests, playing football, frisbee, etc, and had hugged several of them and even jumped on their backs that day, but a paparazzi decided to make a big deal out of her and Billy. She said there was also a party guest taking plenty of photos, which is why she appears to know her picture is being taken in some of them.
I'm not surprised Billy isn't looking to return. The EP hasn't changed, so why would one expect a change in her stance that he not pursue outside opportunities? I always thought that even if they relented and got him back, it would still be a source of contention and something to overcome each contract negotiation.