UPDATE: 9:28 a.m. PT - The judge has ended the hearing, saying good luck.
UPDATE: 9:26 a.m. PT - The judge has now continued the hearing to March 10 and ordered Lindsay to attend that hearing to determine if she has violated her probation related to her 2007 DUI conviction. The judge said he has the impression -- the "feeling" -- that Lindsay does not want to accept the D.A.s offer to settle the case prior to the next hearing.
UPDATE: 9:23 a.m. PT - The judge again told Lindsay there will be jail time in this case, the question is how much time. The judge also told LiLo to quit causing herself and her family additional stress. The judge then said he wants additional psychological information on her so that he can determine what mental help she needs. The judge also told Lindsay she needs to get a reliable, trustworthy sponser -- someone not related to her - to assist her with "whatever stress or issues she has" to keep her away from her substance abuse issues.
UPDATE: 9:21 a.m. PT - The judge told Lindsay "I don't care that your Lindsay Lohan..." He then said this case does involve jail time, and said if she is found in violation of probation, she will go to jail. He also said a preliminary hearing will be held quickly.
UPDATE: 9:20 a.m. PT - The hearing has begun. The judge began by saying the jewelry store's surveillance tape has been turned over to Lindsay's attorney.
UPDATE: 9:12 a.m. PT - Lindsay's lawyer remains in the judge's chambers, along with Deputy D.A. Danette Meyers.
UPDATE: 9:10 a.m. PT - Lindsay's dad Michael just handed a CD to a sheriff to hand to Lindsay. Michael told a RadarOnline.com reporter covering the hearing that it was "evidence," but wouldn't elaborate. Lindsay didn't acknowledge Michael's gesture.
UPDATE: 8:57 a.m. PT - Lindsay was just texting on her phone. She put it away. She is now chatting with a public defender at counsel table.
UPDATE: 8:52 a.m. PT - Lindsay's dad, Michael, is the in same row as Dina and Michael Jr., five seats away from each other. No communication at all between them. The hearing has not yet begun.
UPDATE: 8:50 a.m. PT - Lindsay is sitting in the courtroom. Her family is there. LiLo's attorney Shawn Holley has just been called into the judge's chambers.
UPDATE: 8:35 a.m. PT - Lindsay has entered the courthouse. Unlike her last appearance in which she wore a tight white mini-dress, LiLo arrived wearing a long black sleeved shirt with cream pants and her hair pulled back.
Lindsay Lohan appears in court Wednesday morning before L.A. Superior Court Judge Keith Schwartz for an important hearing to determine if her felony theft case can be settled with a plea deal or by some other resolution, and RadarOnline.com is live streaming the entire proceeding.
Prosecutors allege Lohan, 24, stole a $2,500 necklace from a jewelry store in Venice Beach, CA. just weeks after she was released from rehab. If she is found guilty and is found to be in violation of her probation, connected with her 2007 DUI conviction, she could be sent back to jail.
The hearing begins at 8:30 am PT, and if the case cannot be resolved Wednesday, a new court date will be set.