Despite a flurry of engagement rumors, Kate Hudson and Owen Wilson – Hollywood’s most notorious on-again, off-again couple – have called it quits, less than two months after rekindling their romance in Miami.

The end of their erratic courtship (they began dating in September ’06) comes amid erroneous reports that the pair were engaged, fueled by photos of Hudson wearing a Tiffany & Co. ring (it was a prop!) both on-and-off set of her film Bride Wars, which she’s filming in Boston.

“It was a pretty bad breakup,” says a Wilson pal. “Owen said it was a tough one. He definitely doesn’t want to dwell on it. He wants to put it behind him.”

Since the split, Hudson, 29, and Wilson, 39, have each been spotted letting loose. On May 9, Hudson and Bride Wars costar Steve Howey, 30, visited Boston’s Liberty Hotel bar, Alibi. And on May 11, Wilson dropped by N.Y.C.’s Upstairs with two women.

“He was pretty chummy with the ladies … he was certainly doing some sweet talking,” according to an onlooker. “He looked happy to be there hanging with them.” The late-night outing was followed by a visit to Butter the next night, where he chatted up a sexy blonde. Says a Hudson source: “She feels dumb thinking it was so serious.”

People